Canada Cooperatives Act — C-1.7 285
legislation under which continuance under this Act was authorized. Rights preserved (10) When a body corporate is continued as a cooperative under this Act, (a) the property of the body corporate continues to be the property of the cooperative; (b) the cooperative continues to be liable for the obligations of the body corporate; (c) an existing cause of action, claim or liability to prosecution is unaffected; (d) a civil, criminal, administrative, investigative or other action or proceeding pending by or against the body corporate may be continued to be prosecuted by or against the cooperative; and (e) a conviction against, or ruling, order or judgment in favour of or against, the body corporate may be enforced by or against the cooperative. Membership shares (11) When a body corporate is continued as a cooperative under this Act, (a) its common shares are deemed to be membership shares to which are attached the rights, privileges and restrictions set out in this Act and the articles; (b) the holders of the common shares of the body corporate are deemed to be the members of the cooperative; and (c) any agreement made before continuance under which the holders of any common shares of the body corporate have agreed to vote those shares in a manner provided in the agreement is of no effect. Federal credit union (11.1) If a federal credit union, within the meaning of section 2 of the Bank Act , is continued as a cooperative under this Act, (a) its membership shares are deemed to be membership shares to which are attached the rights, privileges and restrictions set out in this Act and the articles; (b) the members of the federal credit union are deemed to be the members of the cooperative; and (c) any agreement made before continuance under which the members of the federal credit union have agreed to vote in a manner provided in the agreement is of no effect. Issued shares (12) Subject to section 182 and subsection (13), (a) a share of a body corporate issued before it was continued under this Act is deemed to have been issued in compliance with this Act and with the provisions of the articles of continuance, irrespective of whether the share is fully paid and of any designation, right, privilege, restriction or condition set out on or referred to in the certificate representing the share; (b) continuance under this Act does not deprive a holder of any right or privilege that the holder claims under, or relieve the holder of any liability in respect of, an issued share; and (c) shares carry voting rights only to the extent permitted by this Act. Conversion privilege (13) If a cooperative continued under this Act had, before it was so continued, issued a share certificate in registered form that is convertible to bearer form, the cooperative must not, if a holder of such a share certificate exercises the conversion privilege attached to the certificate, issue a share certificate in bearer form. Definition of share (14) For the purposes of subsections (12) and (13), share includes a document referred to in any of subsections 142(1) to (3), a share warrant within the meaning of the Canada Corporations Act , chapter C-32 of the Revised Statutes of Canada, 1970, or a like instrument. 1998, c. 1, s. 285; 2010, c. 12, s. 2113; 2018, c. 8, s. 72