Loan to shareholders

Jyothis (Article) (1127 Points)

30 August 2017  

A P Ltd company registered under COA 2013 has advanced ₹5 Lac to one of its Shareholders, who is no part of Management.

No interest is charged on same and advance is overdue for more than an year.

Is there any violation of provisions of CoA 2013 in the above case?