Must a director who is also a shareholder of a company pay interest on a shareholder's loan?
Legally there is never any forced obligation to charge interest on a shareholder's loan unless stipulated so by the agreement/contract between the parties. The agreement/contract dictates the terms and conditions of the loan including interest.
The challenge here would potentially be a "deemed Interest" for tax purposes. This is not a physical interest charge but an input into the tax calculation for taxable income.
From a fiduciary point of view, consideration should be given if it is in the company's best interest to grant an interest free loan and the financial assistance criteria of S45 of the Companies Act would have to be complied with.
NB: The National Credit Act does not include this type of loan under its purview.