The members are managers of the corporation (like directors in a company) and they are also holders of beneficial interest in the capital of the corporation, represented by the members contributions (like shareholders in a company).T he loan account is distinct from the members contributions. There is nothing at all mysterious about it, it is simply an amount of money owed to a member in respect of financial assistance given by the member.
Assuming the other member wished to continue operating the corporation, there would need to be an agreement regarding the purchase and sale of your members contributions,
and it would include the fate of your loan account. The choices would be you waive repayment thereof, cede it to the purchaser, or arrive at terms with the
corporation regarding repayment. Only after the terms have been met and discharged do you "walk away", if I understand the term correctly.
Dissolving the company can take a few forms. I have attached the Act and you should look at S67. Be that as it may, your loan account is a liability and only "falls away" if the corporation is finally liquidated. In that regard see S68 and S69. remember that as far as the loan account, in excess of R200 is concerned, you are a creditor and can apply for a liquidation order.
The Act is here
CLOSE_CORPORATIONS_ACT_69_OF_1984.pdf
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