The members of a CC are in conflict regarding whether the one member's loan should be repaid from the profit of the sale of an aircraft or whether the profit should be distributed among the members in their respective member's interest ratio.
The association agreement doesn't address this particular circumstance.
Section 51 of the CC Act only refers to distributions of profits that should be made only after considering solvency and liquidity. Further, the Act stipulates that a repayment of a member's loan is not a distribution in terms of the Act so if a loan is repaid, solvency and liquidity is not a concern. No mention in the Act of whether repayment of a loan takes precedence over paying out of profit share (distributions equal to dividends in companies).
My take on this is, if the members cannot agree on whether the profit on the sale of the aircraft should be distributed as profit share or be paid to the one member to extinguish his loan, it comes down to a majority vote at a members' meeting (Section 46(c)). Only, the member wanting repayment of his loan holds 50% and the other two members 25% each member's interest.
Seems this is going to go to arbitration or court?