How do you classify a shareholder's/ director's withdrawal of cash from the business?
If a director is withdrawing cash from the business, it will need a prospective special resolution from shareholders (S45 financial assistance or directors emoluments). The amount will either be classified as a loan which will need to be repaid or it should be declared as a salary.
If a shareholder is withdrawing cash, a special resolution for a related party loan would need to be acquired if it is a repayable loan. Otherwise the loan should be cleared periodically with a distribution (This will need a special resolution and solvency and liquidity tests performed)