Accountants do not know everything about insolvency! So don't rely on them for insolvency advice
In many instances illegal dividends and loans are being made to company directors as a way of reducing tax payments. A dividend becomes illegal if the company does not have enough profit to cover it. HMRC take a dim view of directors who do this and are less likely to agree to time to pay deals.
It should be remembered that a company director has a legal duty to act responsibly. If a company becomes insolvent ( ie meets any one of the insolvency tests ) then the legal duty of the director changes and they must act in the best interests of the creditors. (all of them being treated in the same way). If the directors do not act in the creditors' interests and they act "wrongfully", then they can be made personally liable for the company’s debts from the time they knew the company was insolvent!
So saying my accountant told me to do it may not impress a creditor, liquidator or judge in a civil law action.
If you are an accountant who wants to know more then you can apply for our insolvency toolkit for advisors
Talk to KSA Group for advice or have a look at our comprehensive guides on overdrawn directors accounts