Source: http://lawdelta.org/world/Law:Canada_Cooperatives_Act
Timestamp: 2015-08-04 16:05:41
Document Index: 288646793

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Law:Canada Cooperatives Act - Law Delta
Law:Canada Cooperatives Act
Assented to 1998-03-31
WHEREAS cooperatives in Canada carry on business in accordance with internationally recognized cooperative principles;
WHEREAS cooperatives work for the social and economic development of their communities through policies approved by their members;
WHEREAS the Government of Canada has determined that it is desirable to modernize the law governing those cooperatives;
2 Part 1. Interpretation And Application
2.2 Purpose and Application
2.4 Cooperative Basis
3 Part 2. Incorporation, Structure And Organization
3.1 Incorporators
3.3 Application for Incorporation
3.4 Articles of Incorporation
3.6 By-laws
3.7 Cooperative Basis
3.8 Pre-incorporation Contracts
4 Part 3. Capacity And Powers
5 Part 4. Registered Office And Records
5.4 Corporate Seal
6 Part 5. Membership
6.1 Conditions for Membership
6.2 Withdrawal from Membership
6.5 Termination of Membership by Members
6.6 Other Terminations
7 Part 6. Corporate Governance
7.5 Requisitions
7.6 Other Methods of Calling Meetings
7.7 By-laws
8 Part 7. Directors And Officers
8.3 Conflict of Interests
8.4 Officers
9 Part 8. Capital Structure
9.1 Membership Capital
9.2 Certificates
9.3 Investment Shares
9.5 Corporate Finance
10 Part 9. Proxies
11 Part 10. Insider Trading
12 Part 11. Compulsory Acquisition
13 Part 12. Security Certificates, Registers And Transfers
13.3 Security Certificates
13.4 Registers
13.5 Proceedings
13.6 Delivery
14 Part 13. Financial Disclosure
15 Part 14. Trust Indentures
16 Part 15. Receivers And Receiver-managers
17 Part 16. Fundamental Changes
18 Part 17. Liquidation And Dissolution
19 Part 18. Investigations
20 Part 18.1. Apportioning Award Of Damages
20.1 Interpretation and Application
20.2 Apportionment of Damages
20.3 Joint and Several, or Solidary, Liability
21 Part 19. Remedies, Offences And Punishment
22 Part 20. Additional Provisions Respecting Non-profit Housing Cooperatives
23 Part 21. Additional Provisions Respecting Worker Cooperatives
24 Part 21.1. Documents In Electronic Or Other Form
25 Part 22. General
25.2 Certificates
25.3 Notices and Documents
25.4 Appointment of Director
25.5 Regulations
25.6 Statements
25.7 Records
26 Part 23. Continuance
27 Part 24. Consequential Amendments, Repeal And Coming Into Force
27.1 Consequential Amendments
27.2 Repeal
27.3 Coming into Force
1. This Act may be cited as the Canada Cooperatives Act.
Part 1. Interpretation And Application
“affairs” means the relationship between a cooperative and its affiliates and their members, shareholders, directors and officers, but does not include the business carried on by those bodies corporate.
“affiliate” means an affiliated body corporate within the meaning of subsection (2).
“articles” means the original or restated articles of incorporation, articles of amendment, articles of amalgamation, articles of continuance, articles of reorganization, articles of arrangement, articles of dissolution, articles of revival and articles of correction, and includes any amendments to any of them.
(a) a body corporate of which the person beneficially owns or controls, directly or indirectly, shares or securities currently convertible into shares carrying more than ten per cent of the voting rights under all circumstances or by reason of the occurrence of an event that has occurred and is continuing, or a currently exercisable option or right to purchase such shares or such convertible securities;
(b) a cooperative entity of which the person beneficially owns more than ten per cent of the voting rights that can be cast at a meeting of the cooperative entity;
(c) an unincorporated entity of which the person beneficially owns more than ten per cent of the ownership interests;
(d) a partner of the person acting on behalf of the partnership of which they are partners;
(e) a trust or an estate or succession in which the person has a substantial beneficial interest or serves as a trustee, administrator, executor or liquidator of a succession or in a similar capacity;
“auditor” includes a firm of accountants.
“bearer”, in respect of a security, means the person who is in possession of a security that is payable to bearer or endorsed in blank.
« véritable propriétaire »
“beneficial ownership” includes
(a) in Quebec, the rights of a beneficiary of a trust that owns property, and ownership of property through one or more administrators of the property of others, mandataries or other legal representatives; and
(b) in the rest of Canada, ownership of property through one or more trustees, legal representatives, agents or other intermediaries.
“body corporate” includes a cooperative, a cooperative entity, a company or any other body corporate wherever or however incorporated.
“call” means an option transferable by delivery, to demand delivery of a specified number or amount of securities at a fixed price within a specified time but does not include an option or right to acquire securities of the cooperative that granted the option or right to acquire.
“cooperative” means a body corporate that is incorporated under this Act and not discontinued under this Act.
“cooperative entity”
« entité coopérative »
“cooperative entity” means a body corporate that, by the law under which it is organized and operated, must be organized and operated on — and is organized and operated on — cooperative principles.
“court” means the court of first instance of superior jurisdiction of a province.
« délégué »
“delegate” means an individual who is appointed or elected to represent a member at a meeting of members.
class="MarginalNoteDefinedTe“Director”
“Director” means the Director appointed under section 371.
“director” means an individual occupying the position of director, by whatever name called, of a cooperative, and “board of directors” or “directors” refers to the directors as a body.
“distributing cooperative”
« coopérative ayant fait appel au public »
“distributing cooperative” means, subject to subsections 4(4) and (5), a distributing cooperative as defined in the regulations.
“entity” means a body corporate, a trust, a partnership, a fund or an unincorporated organization.
“federation” means a cooperative whose membership is composed substantially of other cooperative entities, federations or leagues of cooperative entities.
“firm of accountants”
« cabinet de comptables »
“firm of accountants” means a partnership whose partners and accountant employees are accountants engaged in the practice of accounting, or a body corporate that is incorporated by or under an Act of the legislature of a province and engaged in the practice of accounting.
“former Act cooperative”
« coopérative sous le régime de l’ancienne loi »
“former Act cooperative” means a cooperative that was incorporated under the Canada Cooperative Associations Act.
(a) in respect of a security certificate, the person in possession of the certificate issued or endorsed to the person or to bearer or in blank;
(b) in respect of the ownership of a membership share, the person referred to in section 5; and
(c) in respect of the ownership of an investment share, the person referred to in section 6.
« constitué »
“incorporated”, when used with reference to a body corporate that is incorporated by or under an Act of Parliament or ofhe legislature of a province, includes a body corporate that is continued by or under any such Act.
“incorporator” means a person who signs articles of incorporation.
“issuer”, in respect of a security, means the entity that issues the security.
« part de placement »
“investment share” means a share in the capital of a cooperative that is not a membership share.
“meeting of a cooperative”
« assemblée d’une coopérative »
“meeting of a cooperative” means
(a) a meeting of members of a cooperative, or of a class of members of a cooperative, or
(b) a meeting of the holders of investment shares of a cooperative, or a class or series of investment shares,
as the context permits.
“member” means a member of a cooperative, but does not include an auxiliary member.
“member loan”
« prêt de membre »
“member loan” means a loan required by the cooperative from its members as a condition of membership or to continue membership in the cooperative, and, for the purpose of Parts 8, 16, 17, 18.1 and 19 and subsection 163(2), a member loan is deemed to be a membership share issued at par value.
“membership share”
« part de membre »
“membership share” means a share described in section 118.
“Minister” means the member of the Queen’s Privy Council for Canada that is designated by the Governor in Council as the Minister for the purposes of this Act.
“officer” includes the chairperson of the board ofirectors, a vice-chairperson of the board of directors, the president, a vice-president, the secretary, an assistant secretary, the treasurer, an assistant treasurer and the general manager of a cooperative, and any other individual designated as an officer of the cooperative by by-law or by resolution of the directors, or any other individual who performs functions for the cooperative similar to those normally performed by an individual occupying any such office.
“ordinary resolution” means a resolution passed by a majority — or any greater number set out in the articles or a unanimous agreement — of the votes cast by or on behalf of the persons who are entitled to vote in respect of the resolution.
“patronage return”
« ristourne »
“patronage return” means an amount that the cooperative allocates among and credits or pays to its members or to its member and non-member patrons based on the business done by them with or through the cooperative.
“person” means an individual or an entity, and includes a personal representative.
“personal representative” means a person who stands in place of and represents another person including, but not limited to, a trustee, an executor, an administrator, a receiver, an agent, a liquidator of a succession, a guardian, a tutor, a curator, a mandatary or an attorney.
“proxy” means a completed and executed form of proxy by means of which a shareholder appoints a proxyholder to attend and act on the shareholder’s behalf at a meeting of the shareholders.
“put” means an option transferable by delivery, to deliver a specified number or amount of securities at a fixed price within a specified time.
« rachetable »
“redeemable”, with respect to an investment share issued by a cooperative, means that the share is one
(a) that the cooperative may acquire or redeem on the demand of the cooperative; or
(b) that the cooperative is required by its artcles to acquire or redeem at a specified time or on the demand of the holder.
“security” includes an investment share, a debt obligation of a cooperative and a certificate evidencing such a share or debt obligation and, for the purposes of section 173 and Parts 18.1 and 19, includes a membership share.
“security interest” means an interest in or charge on property of a cooperative to secure payment of a debt or the performance of an obligation of the cooperative.
“send” includes deliver.
“series”, in respect of investment shares, means a division of a class of those shares.
“share” means a membership share or an investment share.
« détenteur de parts de placement »
“shareholder” means a person described in section 6.
“special resolution” means a resolution passed by not less than two thirds — or any greater number set out in the articles or a unanimous agreement — of the votes cast by or on behalf of the persons who are entitled to vote in respect of the resolution.
“unanimous agreement”
« convention unanime »
“unanimous agreement” means an agreement in writing among all members and all shareholders, if any, that contains a provision referred to in subsection 115(1).
(a) a body corporate is affiliated with another body corporate if one of them is a subsidiary of the other, if both are subsidiaries of the same body corporate or if each of them is controlled by the same person; and
(3) For the purposes of this Act, the word “minor” has the same meaning as in the applicable provincial law and, in the absence of any such law, has the same meaning as the word “child” in the United Nations Convention on theights of the Child, adopted in the United Nations General Assembly on November 20, 1989.
1998, c. 1, s. 2; 2000, c. 12, s. 28; 2001, c. 14, s. 137.
3. (1) The purposes of this Act are
(a) to set out the law applicable to the business endeavours of persons who have associated themselves in a democratic manner to carry on a common purpose; and
(b) to advance the cause of uniformity of cooperative business law in Canada.
Carrying on business in more than one place
(2) No cooperative may be incorporated under this Act unless
(a) it will carry on its undertaking in two or more provinces; and
(b) it will have a fixed place of business in more than one province.
(3) This Act applies to cooperatives incorporated under this Act that have not been discontinued.
(4) No provision of the Canada Business Corporations Act, the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, or the Winding-up and Restructuring Act applies to a cooperative.
Limitation on business that can be carried on
(5) No cooperative may carry on the business of
(b) a company to which the Insurance Companies Act applies;
(c) a company to which the Trust and Loan Companies Act applies; or
(d) an association to which the Cooperative Credit Associations Act applies.
Prohibition on granting degrees
(6) No cooperative may carry on business as a degree-granting educational institution unless expressly authorized to do so by a federal or provincial agent that by law has the power to confer degree-granting authority on an educational institution.
(a) a person controls a body corporate if securities of the body corporate to which are attached more than fifty per cent of the votes that may be cast to elect directors of the body corporate are beneficially owned by the person and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate; and
(b) a person controls a cooperative entity if the person has the right to exercise more than fifty per cent of the votes that may be cast at an annual meeting or to appoint or elect a majority of the directors.
(2) A body corporate is the holding body corporate of another if that other body corporate is its subsidiary.
(3) A body corporate is a subsidiary of another body corporate if
Exemptions — on application by cooperative
(4) On the application of a cooperative, the Director may determine that the cooperative is not or was not a distributing cooperative if the Director is satisfied that the determination would not be prejudicial to the public interest.
Exemptions — classes of cooperatives
(5) The Director may determine that a class of cooperatives are not or were not distributing cooperatives if the Director is satisfied that the determination would not be prejudicial to the public interest.
(6)�(Repealed, 2001, c. 14, s. 138)
1998, c. 1, s. 4; 2001, c. 14, s. 138.
Membership share ownership
5. A member is a holder of a membership share of a cooperative when, according to the members’ register of the cooperative, the member is the owner of the membership share or is entitled to be entered in the members’ register or like record of the cooperative as the owner of the membership share.
Investment share ownership
6. A person is a shareholder of a cooperative when, according to the securities register of the cooperative, the person is the owner of an investment share or is entitled to be entered in the securities register or like record of the cooperative as the owner of the investment share.
7. (1) For the purposes of this Act, a cooperative is organized and operated, and carries on business, on a cooperative basis if
(a) membership in the cooperative is open, in a non-discriminatory manner, to persons who can use the services of the cooperative and who are willing and able to accept the responsibilities of membership;
(b) each member or delegate has only one vote;
(c) no member or delegate may vote by proxy;
(d) interest on any member loan is limited to a maximum percentage fixed in the articles;
(e) dividends on any membership share are limited to the maximum percentage fixed in the articles;
(f) to the extent feasible, members provide the capital required by the cooperative, with the return paid on member capital not to exceed the maximum percentage specified in the articles;
(g) surplus funds arising from the cooperative’s operations are used
(i) to develop its business,
(ii) to provide or improve common services to members,
(iii) to provide for reserves or the payment of interest on member loans or dividends on membership shares and investment shares,
(iv) for community welfare or the propagation of cooperative enterprises, or
(v) as a distribution among its members as a patronage return; and
(h) it educates its members, officers, employees and the public on the principles and techniques of cooperative enterprise.
(2) Paragraph (1)(a) is subject to any restrictions on the classes of persons to which membership may be available that may reasonably relate to any business restriction set out in the articles of the cooperative and to the reasonable commercial ability of the cooperative to provide services to prospective members, as long as the restrictions are consistent with applicable laws with respect to human rights.
(3) Despite paragraph (1)(b),
(a) the articles of a federation may provide that the members or delegates of the federation have more than one vote;
(b) if, before the coming into force of this subsection, the articles of association or charter by-laws of a former Act cooperative provide that a member or delegate of the former Act cooperative has more than one vote, the articles filed under subsection 379(2) may contain the same provisions with respect to voting rights of members or delegates;
(c) any provision referred to in paragraph (b) is deemed to be contained in the articles of the cooperative until it complies with subsection 379(2); and
(d) the articles of a cooperative may provide that subject to the conditions stated in the articles, a cooperative entity may have more than one vote in a cooperative.
Part 2. Incorporation, Structure And Organization
8. (1) An application for incorporation of a cooperative may be made by a minimum of three persons, or by one or more cooperative entities, who intend to be members of the cooperative.
Persons who may not be incorporators
(2) A person may not make an application under subsection (1) if the person is
(a) an individual who is less than eighteen years of age;
(b) an individual who is of unsound mind and has been so found by a court in Canada or elsewhere; or
(c) an individual or body corporate that has the status of bankrupt.
1998, c. 1, s. 8; 2001, c. 14, s. 139.
9. A cooperative may be incorporated with or without membership shares and with or without the power to issue investment shares.
10. An application for incorporation is made by sending the following to the Director:
(c) a notice of directors in accordance with section 81;
(d) a declaration signed by the incorporators that after incorporation the cooperative will be organized and operated and will carry on business on a cooperative basis;
(e) if applicable, a declaration signed by the incorporators that after the incorporation the cooperative will be in compliance with either Part 20 or 21; and
11. (1) Articles of incorporation must be in the form fixed by the Director and contain the following particulars:
(c) the name and residence address of each of the incorporators;
(i) whether the cooperative is to be incorporated with or without membership share capital, and, if there is to be no membership share capital, a statement that the interest of each member as member is, subject to subsection 7(3), the same as that of every other member;
(5) The articles must be signed by the incorporators.
12. (1) The Director must issue a certificate of incorporation for a cooperative if the Director is satisfied that
(2) For the purposes of paragraphs (1)(b) and (c), the Director may rely on the articles and the declarations required by section 10.
1998, c. 1, s. 12; 2001, c. 14, s. 140.
Date of existence and effect
13. On the day set out in its certificate of incorporation, a cooperative comes into existence and the incorporators become members of the cooperative.
14. Without delay after the issuance of the certificate of incorporation, a meeting of the members must be held to make by-laws for the cooperative.
By-laws — mandatory provisions
15. (1) The by-laws of a cooperative must provide for
(e) whether the interest of a member in the cooperative may, subject to section 46, be transferred or assigned, and any conditions or restrictions that apply to such a transfer or assignment;
(i) subject to sections 39 and 40 and Parts 20 and 21, the conditions on which membership is terminated, whether by withdrawal or by involuntary termination, if it may be terminated otherwise than as provided for in this Act, and the determination of the value and disposition of the member’s interest in the cooperative on termination; and
By-laws — other provisions
1998, c. 1, s. 15; 2001, c. 14, s. 141.
Binding effect of by-laws and articles
16. The articles and by-laws of a cooperative bind it and its members to the same extent as if they
(a) had been signed by the cooperative and every member; and
(b) contained undertakings by every member and the successors, assigns and personal representatives of every member to observe all the provisions of the articles and by-laws.
1998, c. 1, s. 16; 2001, c. 14, s. 142.
17. (1) Each member and shareholder may on request, not more than once in each calendar year, receive free of charge one copy of the articles, the by-laws and any unanimous agreement, and one copy of any amendments to the articles, the by-laws and any unanimous agreement, of the cooperative.
(2) The cooperative must provide each creditor, and, where the cooperative is a distributing cooperative, any other person, on payment of a reasonable fee, with a copy of the articles, the by-laws and any unanimous agreement of the cooperative.
18. (1) Every cooperative must be organized and operated and must carry on business on a cooperative basis.
(2) A person may make an application to the court in accordance with section 329 if the person has a complaint that
(a) a cooperative is not organized, operated or carrying on business on a cooperative basis; or
(b) in the case of a cooperative to which Part 20 or 21 applies, the cooperative is not complying with the applicable Part.
19. (1) Subject to this section, a person who enters into, or purports to enter into, a written contract in the name of or on behalf of a cooperative before it comes into existence is personally bound by the contract and is entitled to its benefits, unless the contract expressly provides otherwise.
Adoption by cooperative
(2) A cooperative may, within a reasonable time after it comes into existence, adopt a contract that was made in its name or on its behalf before it came into existence by any act or conduct that signifies the cooperative’s intention to be bound by the contract.
(3) If a cooperative adopts a contract under this section,
(a) the cooperative is bound by the contract and entitled to its benefits as of the date of the contract; and
(b) the person who originally entered into the contract ceases to be bound by the contract or to be entitled to its benefits, subject to an order made under subsection (4).
(4) Whether or not a cooperative has adopted a contract, the court may, on application by a party to the contract,
(a) make an order respecting the nature and extent of the obligations and liability under the contract of the cooperative and the person who entered into or purported to enter into the contract by or on behalf of the cooperative; and
(b) make any other order that the court considers just in the circumstances.
1998, c. 1, s. 19; 2001, c. 14, s. 143.
20. (1) A cooperative must have the word “cooperative”, “co-operative”, “coop”, “co-op”, “coopérative”, “united” or “pool”, or another grammatical form of any of those words, as part of its name.
(2) A cooperative that has the word “cooperative”, “co-operative”, “coop”, “co-op” or “coopérative”, or another grammatical form of any of those words, as part of its name may use and be legally designated by any of those words or forms.
(3) If the business of a cooperative is restricted by its articles or by a resolution of its members to a specific business purpose, the cooperative must have as part of its name one or more words that suggest the nature of the restriction.
(4) The name of a cooperative may be set out in its articles in an English form, a French form, an English form and a French form, or a combined English and French form, so long as the combined form meets the prescribed criteria. The cooperative may use and be legally designated by any such form.
(5)�(Repealed, 2001, c. 14, s. 144)
Identification outside Canada
(6) A cooperative may set out in its articles its name in any language form and, if it does, it may use and be legally designated outside Canada by its name in that form.
(7) A cooperative must set out its name in legible characters in all contracts, invoices, negotiable instruments and orders for things or services made by or on behalf of the cooperative and in all documents filed with the Director under this Act.
1998, c. 1, s. 20; 2001, c. 14, s. 144.
21. Subject to subsection 20(3) and section 23, a cooperative may carry on business or identify itself by a name or style other than as set out in its articles.
22. The Director may, on request, reserve for ninety days a name for an intended cooperative or for one that intends to change its name.
23. A cooperative may not be incorporated with, have, carry on business under or identify itself by a name that is
(a) prohibited, or deceptively misdescriptive, as may be prescribed; or
(b) reserved for another body corporate.
24. (1) The Director may direct a cooperative to change its name if the cooperative’s name contravenes section 23 when the cooperative comes into existence or is continued.
(2) If a cooperative has not complied with a direction under subsection (1) within sixty days after it is served with a written copy of the direction, the Director may issue a certificate of amendment revoking the name of the cooperative and assigning a new name to it.
(3) If a cooperative acquires a name as a result of a person undertaking to dissolve or to change names, and the undertaking is not honoured, the Director may direct the cooperative to change its name in accordance with section 289, unless the undertaking is honoured within the period specified in subsection (2).
Amendment of articles when certificate of amendment issued
(4) The articles of the cooperative are deemed to be amended accordingly on the date shown in the certificate of amendment issued under subsection (2).
(5) On issuing a certificate of amendment under subsection (2), the Director must give notice of the change of name without delay in a publication generally available to the public.
Prohibition on use of name
25. Every entity, other than a cooperative incorporated under this Act or a body corporate incorporated by or under the authority of another Act of Parliament or an Act of the legislature of a province, is guilty of an offence if the entity uses or authorizes the use of the word “cooperative”, “co-operative”, “co-op”, “coop”, “coopérative” or “pool”, or another grammatical form of any of those words, as part of its name or in any manner in connection with the conduct of its business so that the entity could reasonably be considered to be holding itself out as carrying on business as a cooperative entity.
Part 3. Capacity And Powers
26. (1) Subject to this Act, a cooperative
(a) has the capacity and the rights, powers and privileges of a natural person; and
(b) may carry on business throughout Canada.
By-laws not required to confer powers
(2) It is not necessary for a cooperative to pass a by-law in order to confer any particular power on a cooperative or its directors.
Powers outside the jurisdiction
27. (1) Subject to this Act, a cooperative has the capacity to carry on its business, conduct its affairs and exercise its powers in any jurisdiction outside Canada to the extent and in the manner that the laws of that jurisdiction permit.
(2) No cooperative and no subsidiary of a cooperative may carry on any business contrary to a restriction set out in the articles of the cooperative.
(3) No act of a cooperative, including a transfer of property, is invalid by reason only that the act is contrary to its articles or this Act.
(4) A member of a cooperative is deemed to have knowledge of the content of the articles and by-laws of the cooperative.
(5) Subject to subsection (4), no person is deemed to have knowledge of the content of a document by reason only that it is filed with the Director or is available for inspection at the cooperative.
28. (1) No cooperative and no guarantor of an obligation of a cooperative may assert against a person dealing with the cooperative or against a person who acquired rights from the cooperative that
(a) the cooperative’s articles, by-laws or any unanimous agreement have not been complied with;
(b) the persons named in the most recent notice of directors filed with the Director are not the directors;
(c) the place named in the most recent notice of registered office filed with the Director is not the registered office;
(d) a person held out as a director, an officer, an agent or a mandatary of the cooperative has not been duly appointed or has no authority to exercise the powers and perform the duties that are customary in the business of the cooperative or usual for a director, officer, agent or mandatary;
(e) a document issued by a director, officer, agent or mandatary of the cooperative with actual or usual authority to issue it is not valid or genuine; or
(f) a sale, lease or exchange of all or substantially all of the property of the cooperative was not authorized.
(g)�(Repealed, 2001, c. 14, s. 145)
(2) Subsection (1) does not apply in respect of a person who has, or ought to have, knowledge of a situation described in that subsection by virtue of their relationship to the cooperative.
1998, c. 1, s. 28; 2001, c. 14, s. 145.
29. The members and shareholders of a cooperative, by reason only of being members or shareholders, are not liable for any liability, act or default of the cooperative, except as provided in this Act.
Part 4. Registered Office And Records
30. (1) A cooperative must maintain a registered office in the place set out in its articles.
(2) A notice of registered office in the form that the Director fixes must be sent to the Director together with any articles that designate or change the place of the registered office of the cooperative.
(3) The directors may change the address of the registered office within the place specified in the articles.
(4) A cooperative must send to the Director, within fifteen days after any change of address of its registered office, a notice in the form that the Director fixes.
31. (1) A cooperative must prepare and maintain the following records at its registered office or at any other place in Canada designated by the directors:
(a) the cooperative’s articles and by-laws, including any amendments and a copy of any unanimous agreement;
(b) the minutes of meetings of the members and shareholders;
(c) copies of all notices of directors and notices of change of directors;
(d) a list of its members, setting out their names and addresses, the number of any membership shares owned and the amount of any member loans;
(e) a list of its shareholders, setting out their names and addresses and the number of investment shares owned;
(f) a register of its directors, setting out the names and addresses of the individuals who are or who have been directors and the dates on which they became or ceased to be directors; and
(g) if the cooperative issues securities in registered form, a securities register that complies with section 186.
(2) In addition to the records specified in subsection (1), a cooperative must prepare and maintain adequate
(b) records containing minutes of meetings and resolutions of directors and any committee of directors; and
(c) records sufficient for the purpose of calculating patronage returns, that show for each member particulars of the transactions between the cooperative and the member.
(3) Despite subsection (1), but subject to the Income Tax Act, the Excise Tax Act, the Customs Act and any other Act administered by the Minister of National Revenue, a cooperative may keep all or any of its records mentioned in paragraphs (1)(a), (b), (c), (f) and (g) and (2)(a) and (b) at a place outside Canada, if
(a) the records are available for inspection, by means of a computer terminal or other technology, during regular office hours at the registered office or another office in Canada designated by the directors; and
(b) the cooperative provides the technical assistance to facilitate an inspection referred to in paragraph (a).
(4) Subject to any other Act of Parliament and to any Act of the legislature of a province that provides for a longer retention period, a cooperative must retain the accounting records referred to in paragraph (2)(a) for a period of six years after the end of the financial year to which they relate.
Records of continued cooperatives
(5) For the purposes of paragraph (1)(b) and subsections (2) to (4), if a body corporate is continued under this Act, “records” includes similar records required by law to be maintained by the body corporate before it was so continued.
1998, c. 1, s. 31; 2001, c. 14, s. 146.
32. (1) Any register or record required by this Act must be prepared and maintained in a form that is capable of reproducing any required information in intelligible written form within a reasonable time, including
(2) A cooperative and its agents and mandataries must take reasonable precautions respecting the registers and records required by this Act to
Records open to directors’ inspection
(3) The records described in section 31, other than those described in paragraph 31(2)(c), must be open for inspection by the directors at any reasonable time.
Inspection and copying of records by members, creditors and shareholders
(4) Members, creditors and shareholders of the cooperative, their personal representatives and the Director may examine the records referred to in paragraphs 31(1)(a), (b), (c) (f) and (g) during the usual business hours of the cooperative and may take extracts from the records, free of charge, or have copies of them made after payment of a reasonable fee.
1998, c. 1, s. 32; 2001, c. 14, s. 147.
33. (1) Members, shareholders and creditors of a cooperative and their personal representatives and, where the cooperative is a distributing cooperative, any other person, may request that the cooperative provide them with a list of members or shareholders, no later than ten days after the cooperative receives the affidavit referred to in subsection (2) and after payment of a reasonable fee.
(b) an undertaking that the list of members or shareholders will not be used except as permitted by subsection (5).
Request by Director
(3) The Director may request that the cooperative provide him or her with a list of members or shareholders, no later than ten days after the cooperative receives the request and after payment of a reasonable fee.
(4) The list of members or shareholders provided under subsection (1) or (3) must set out in alphabetical order the names and addresses of the members or shareholders of the cooperative as of a date not more than ten days before the receipt of the affidavit referred to in subsection (2) or the request referred to in subsection (3).
Permitted uses of list
(5) A list obtained under subsection (1) must not be used by any person except in connection with
(a) an effort to influence voting at a meeting of the cooperative; and
(b) any other matter relating to the affairs of the cooperative.
Non-inclusion of name on request
(6) A member or shareholder may advise the cooperative in writing that their name is not to be included in a list prepared by the cooperative further to a request under subsection (1), in which case the cooperative must not include that name in the list but must mention on the list that the list is incomplete.
1998, c. 1, s. 33; 2001, c. 14, s. 148.
34. (1) A cooperative may but need not adopt a corporate seal and may change a corporate seal that is adopted.
(2) A document executed on behalf of a cooperative is not invalid merely because a corporate seal is not affixed to it.
By-laws govern
35. Subject to this Act and any provision in the articles, membership in a cooperative is governed by its by-laws.
36. (1) No person may be admitted to membership in a cooperative until
(a) the person has applied for membership in writing;
(b) the application has been approved by the directors; and
(c) the person has complied with the membership provisions required by the by-laws, including subscribing for any minimum number of membership shares, paying any minimum amount on account of the subscription price of the shares or paying any minimum amount on account of a member loan.
(2) If all the conditions set out in subsection (1) have been met within six months after the date on which the cooperative receives the application for membership, the directors may make the admission of the member into membership effective as of the date of the application or as of any date after that date but before the end of the six months.
37. (1) Subject to subsection (2) and subsection 7(3), a member has one vote on all matters to be decided by the members.
(2) If the by-laws provide that the voting rights of a member are vested in one or more delegates to be elected or appointed by the members, the delegates so elected or appointed may exercise all or any of those rights.
When delegation permitted by by-laws
(3) When in this Act reference is made to a meeting of members and the cooperative has a by-law providing for the appointment of delegates, a reference in this Act to a meeting of members is to be construed as a reference to a meeting of delegates.
Members under eighteen years of age
38. (1) Subject to the by-laws, a person less than eighteen years of age may be admitted to membership in a cooperative and may vote at meetings of the cooperative.
(2) The articles and by-laws of a cooperative, and any unanimous agreement, are binding on a member who is less than eighteen years of age.
39. (1) Unless the by-laws provide otherwise, this section applies to the voluntary withdrawal of a member from membership in a cooperative.
(2) A member may withdraw from membership in a cooperative by written notice to the cooperative. Any such withdrawal is effective on the later of the date stated in the notice and the date on which the cooperative receives the notice.
Redemption of membership shares and repayment of amounts owing on withdrawal
(3) Subject to section 149, the cooperative must, no later than one year after the effective date of a notice of withdrawal, redeem all membership shares held by the withdrawing member at the redemption price determined in accordance with section 146 and repay to the member all member loans, all other amounts held to the member’s credit and all amounts outstanding on loans made to the cooperative by the member, together with any interest accrued on those amounts up to the date of the payment.
Redemption and repayment more than one year after withdrawal
(4) Despite subsection (3), if the directors determine that the redemption of membership shares, or the repayment of membership loans, of a withdrawing member would adversely affect the financial well-being of the cooperative, the directors may direct that the redemption and repayment referred to in subsection (3) take place after the end of the one year period.
Withdrawal not to have certain effects
(5) Unless the directors determine otherwise,
(a) the withdrawal of a member from the cooperative does not release the member from any debt or obligation to the cooperative or contract with the cooperative; and
(b) the cooperative need not, despite subsection (3), repay to the member amounts outstanding on loans made to the cooperative that have a fixed maturity date until that date has arrived.
Termination of membership by directors
40. (1) This section sets out the rights and procedures that apply to termination of membership. The by-laws of a cooperative may derogate from this section, but only in respect of the manner in which the membership of members may be terminated.
Special resolution of directors
(2) The directors may by special resolution order the termination of the membership of a member but, if the cooperative is in breach of section 149 — or if making the payment referred to in subsection (7) would put the cooperative in breach of section 149 — the termination is not effective until the cooperative is no longer in breach.
(3) Not more than ten days after the date on which a special resolution is made, the secretary of the cooperative must give written notice to the member of the termination and the reasons for it. Subject to subsections (4) and (5), the effective date of the termination is the later of the date specified in the written notice and thirty days after the member receives the notice.
(4) A member whose membership has been terminated may appeal from the decision of the directors to the next meeting of members by giving written notice to the secretary of the member’s intention to appeal no later than thirty days after receiving notice of the special resolution.
(5) If a member gives a notice of appeal, the effect of the special resolution is suspended until the vote of the members under subsection (6).
(6) If a member appeals the termination of membership, a vote of members must be taken at the next meeting of members as to whether the member’s membership should be terminated as of the effective date referred to in subsection (3). The vote is by majority of the members present at the meeting, unless a greater proportion is specified in the articles, the by-laws or a unanimous agreement.
(7) Subject to section 149, if a member’s membership is terminated, a cooperative must, no later than one year after the date of the special resolution, redeem all membership shares held by the member at the redemption price determined in accordance with section 146, and repay to the member all member loans and all other amounts held to the member’s credit and all amounts outstanding on loans made to the cooperative by the member, together with any interest accrued on those amounts up to the date of the payment.
Termination of membership not to have certain effects
(8) Unless the directors determine otherwise, the termination of the membership of a member does not release the member from any debt or obligation to the cooperative or contract with the cooperative.
If address of member unknown
(9) If the address of a member whose membership has been terminated by the directors is unknown to the cooperative after all reasonable efforts have been made to ascertain it and two years have elapsed since the effective date referred to in subsection (3), the cooperative must transfer all amounts owing under subsection (7) to a reserve fund, but those amounts do not, despite subsection (7), include any interest that would have accrued after the end of the two years.
Amounts paid to entitled persons
(10) If any amounts are transferred to a reserve fund under subsection (9), the cooperative must pay those amountso any person who, no later than ten years after the transfer, shows evidence of entitlement satisfactory to the cooperative. If no person appears to show that evidence within the ten years, the amounts become the property of the cooperative.
Limitation on by-law
41. No by-law governing the withdrawal of a member from membership or the termination of the membership of a member may authorize a redemption of membership shares or member loans in contravention of section 149.
Termination by members
42. Unless the by-laws provide otherwise, the membership of a member may be terminated by a special resolution of the members. Section 40 applies, with any modifications that the circumstances require, to a termination by the members.
Termination of inactive membership
43. (1) A cooperative may, by written notice to a member, terminate the membership if the member
(a) is a body corporate and winding-up proceedings have commenced with respect to it; or
(b) failed, during a period of two consecutive years, to transact any business with the cooperative.
(2) Section 40, other than subsections 40(7) to (10), does not apply to a termination under this section.
44. If the membership of a person in a non-profit housing cooperative is terminated, any right of the person to possession or occupancy of residential premises acquired by virtue of membership in the cooperative is subject to Part 20.
45. A person whose membership has been terminated under section 40 or 42 may be re-admitted to membership only by special resolution of the members.
46. No transfer of a membership, a member loan or a membership share in a cooperative is valid for any purpose unless it is approved by the directors and the transferee has otherwise complied with the articles and by-laws of the cooperative and, if applicable, become a party to a unanimous agreement.
If membership too low
47. If the membership of a cooperative is reduced to a number less than the number of members required for incorporation, and if after thirty days notice remains at less than that number, the Director may require the cooperative
(a) to apply for a certificate of continuance under the Canada Business Corporations Act, if it was incorporated with membership capital; or
(b) to be liquidated or dissolved under Part 17.
Part 6. Corporate Governance
48. (1) Meetings of the members of a cooperative are to be held at the place in Canada provided for in the by-laws or, in the absence of such a provision, at any place in Canada that the directors may determine.
Place of shareholders’ meetings
(2) Meetings of the shareholders must be held at the place set out in the articles. If the articles do not set out such a place, the meetings are to be held at the place in Canada that the directors determine, unless all the shareholders entitled to vote at the meeting agree that the meeting is to be held at another place that is not in Canada.
(3) Unless the by-laws provide otherwise, a member or shareholder may participate in a meeting of the cooperative, in accordance with the regulations, if any, by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting, if the cooperative makes available such a communication facility.
(3.1) If the directors of a cooperative, or any other person, call a meeting of the cooperative pursuant to this Act, those directors or that person, as the case may be, may determine that the meeting shall be held, in accordance with the regulations, if any, entirely by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting, if the by-laws so provide.
(4) A person participating in a meeting referred to in subsection (3) is deemed to be present at the meeting.
1998, c. 1, s. 48; 2001, c. 14, s. 149.
Calling members’ meetings
49. (1) After holding the organizational meeting referred to in section 82, the directors must call a meeting of the members without delay.
Business at first meeting
(2) The members, at their first meeting, must
(a) adopt by-laws for the cooperative;
(b) elect directors in accordance with subsection 81(3); and
(c) subject to subsection 254(1), appoint an auditor to hold office until the close of the first annual meeting of members.
Calling meetings of the members
50. (1) The directors must call the first annual meeting of members not later than eighteen months after the cooperative comes into existence and an annual meeting of members must be held not later than the earlier of
(a) fifteen months after holding the last annual meeting, and
(b) six months after the end of the preceding financial year.
(2) The directors may at any time call a special meeting of the members or of the shareholders.
Order to delay calling of annual meeting
(3) Despite subsection (1), the cooperative may apply to the court for an order extending the time for calling an annual meeting.
1998, c. 1, s. 50; 2001, c. 14, s. 150.
51. (1) The directors may, within the prescribed period, fix in advance a date as the record date for the determination of the members or shareholders who are entitled to receive payment of a dividend or for any other purpose except the right to receive notice of, or to vote at, a meeting.
Record date — members’ meetings
(2) For the purpose of determining the persons who are entitled to receive notice of, or to vote at, a meeting of members, the record date is
(a) the day before the day on which the notice is given; or
(b) if no notice is given, the day of the meeting.
Record date — notice of shareholders’ meetings
(3) For the purpose of determining the shareholders who are entitled to receive notice of a meeting of the shareholders, the directors may, within the prescribed period, fix in advance a date as the record date for that determination.
Record date — voting at shareholders’ meetings
(4) For the purposes of determining the shareholders who are entitled to vote at a meeting of shareholders, the directors may, within the prescribed period, fix in advance a date as the record date for that determination.
If no record date fixed
(5) If no record date is fixed under subsection (1) or (3), the record date
(a) for the determination of members or shareholders for any purpose, other than to establish the right of a member or shareholder to receive notice of a meeting or to vote, is the day on which the directors pass the resolution relating to the particular purpose; and
(b) for the determination of shareholders who are entitled to receive notice of a meeting is
(i) the day before the day on which the notice is given, or
(ii) if no notice is given, the day of the meeting.
If record date fixed
(6) If a record date with respect to shareholders is fixed under this section, unless notice of the date is waived by each shareholder whose name is set out in the securities register at the close of business on the day the directors fix the record date, notice of the record date must be given within the prescribed period
(a) by advertisement in a newspaper published or distributed in a place where the cooperative has its registered office and in each place in Canada where it has a transfer agent or where a transfer of its investment shares may be recorded; and
1998, c. 1, s. 51; 2001, c. 14, s. 151.
52. (1) Notice of the time and place of a meeting of a cooperative must be sent within the prescribed period
(a) to each person who is entitled to vote at the meeting;
(c) to the auditor of the cooperative, if any.
(1.1) In the case of a cooperative that is not a distributing cooperative, the notice may be sent within a shorter period if so specified in the articles or the by-laws.
(2) Notice of the time and place of a meeting of the holders of investment shares of any class that is publicly traded on a recognized stock exchange in Canada may be published once a week for at least four consecutive weeks before the date of the meeting in a newspaper in general circulation in the place where the registered office of the cooperative is situated and in each place in Canada where the cooperative has a transfer agent or where a transfer of the investment shares may be recorded.
By-laws may specify manner of giving notice to members
(3) The by-laws of a cooperative may derogate from this section, but only in respect of the manner in which notice of a meeting of members may be given to members.
1998, c. 1, s. 52; 2001, c. 14, s. 152.
53. A notice of a meeting of a cooperative need not be sent to a shareholder who was not registered on the records of the cooperative or its transfer agent on the record date fixed or determined under section 51.
54. Failure to receive notice of a meeting does not deprive a person of a right to vote at the meeting to which the person is otherwise entitled.
Notice when adjournment
55. (1) If a meeting of a cooperative is adjourned for less than thirty days, it is not necessary, unless the by-laws provide otherwise, to give notice of the adjourned meeting, other than by announcement at the earliest meeting that is adjourned.
Notice of adjournment — meetings of members
(2) If a meeting of members is adjourned by one or more adjournments for a total of thirty days or more, notice of the adjourned meeting must be given as for the original meeting.
Notice of adjournment — meetings of shareholders
(3) If a meeting of shareholders is adjourned by one or more adjournments for a total of thirty days or more, notice of the adjourned meeting must be given as for the original meeting but, unless the meeting is adjourned by one or more adjournments for a total of more than ninety days, subsection 165(1) does not apply.
56. (1) All matters dealt with at a special meeting of a cooperative and all matters dealt with at an annual meeting, except consideration of the financial statements, the auditor’s report, the business of the cooperative, the election of directors, the remuneration of directors and the re-appointment of the incumbent auditor, are special business.
Notice if special business is to be transacted
(2) Notice of a meeting of a cooperative at which special business is to be transacted must
(a) state the nature of the special business in sufficient detail to permit the recipient to form a reasoned judgement with respect to the special business; and
57. (1) A person who is entitled to attend a meeting of a cooperative may waive notice of the meeting in any manner.
58. (1) A member may
(a) submit to the cooperative notice of any matter that the member proposes to raise at an annual meeting; and
Proposals by members or directors to amend articles
(2) Any member or director may, in accordance with section 290, make a proposal to amend the articles.
Proposals by other persons to amend articles
(2.1) Any other person may, in accordance with section 290, make a proposal to amend the articles if the person
(a) has been, for at least the prescribed period, the registered holder or the beneficial owner of at least the prescribed number of outstanding investment shares of the cooperative; or
(b) has the support of persons who, in the aggregate, and including or not including the person that submits the proposal, have been, for at least the prescribed period, the registered holders, or the beneficial owners of, at least the prescribed number of outstanding investment shares of the cooperative.
(2.2) A proposal submitted by a person described in paragraph (2.1)(a) must be accompanied by the following information:
(b) the number of investment shares held or owned by the person and by the person’s supporters, if applicable, and the date the investment shares were acquired.
(2.3) The information provided under subsection (2.2) does not form part of the proposal or of the supporting statement referred to in subsection (3) and is not included for the purposes of the prescribed maximum word limit set out in subsection (3).
(2.4) If requested by the cooperative within the prescribed period, a person who submits a proposal must provide proof, within the prescribed period, that the person meets the requirements of subsection (2.1).
Proposal and statement to accompany notice of meeting
(3) A proposal submitted for consideration at a meeting must be attached to the notice of the meeting, together with, if requested by the person making the proposal, a statement in support of the proposal and the name and address of person making the proposal. The statement and the proposal must together not exceed the prescribed maximum number of words.
(4) A cooperative need not comply with subsection (3) if
(a) the proposal is not submitted to the cooperative at least the prescribed number of days before the anniversary date of the notice of meeting that was sent to members and shareholders in connection with the previous annual meeting;
(b) it clearly appears that the primary purpose of the proposal is to enforce a personal claim or redress a personal grievance against the cooperative or its directors, officers, members or security holders;
(c) not more than the prescribed period before the receipt of a proposal, a person failed to present, at a meeting, a proposal that, at the person’s request, had been attached by the cooperative to the notice of the meeting;
(d) substantially the same proposalas attached to a notice of meeting relating to a meeting of the cooperative held not more than the prescribed period before the receipt of the proposal and the proposal did not receive the prescribed minimum amount of support at the meeting; or
Cooperative may refuse to include proposal
(4.1) If
(a) a person described in subsection (2.1) makes a proposal and fails to continue to hold or own the number of investment shares referred to in that subsection up to and including the day of the meeting, or
(b) a member makes a proposal and, prior to the meeting, withdraws from membership in accordance with section 39,
the cooperative is not required to include in the notice of a meeting, or attach to it, any proposal submitted by that person for any meeting held within the prescribed period following the date of the meeting.
1998, c. 1, s. 58; 2001, c. 14, s. 153.
Liability for circulation
59. No cooperative or person acting on behalf of a cooperative incurs any liability by reason only of circulating a proposal or statement in accordance with section 58.
60. (1) If a cooperative refuses to include a proposal in a notice of a meeting referred to in section 52, the cooperative must, within the prescribed period after the day on which it receives the proposal or the day on which it receives the proof of ownership under subsection 58(2.4), as the case may be, notify in writing the person submitting the proposal of its intention to omit the proposal from the notice and of the reasons for the refusal.
Restraining order by court
(2) On the application of a person submitting a proposal who claims to be aggrieved by a cooperative’s refusal under subsection (1), a court may restrain the holding of the meeting at which the proposal is sought to be presented and make any further order it thinks fit.
Order to omit proposal from notice
(3) A cooperative or any person claiming to be aggrieved by a proposal may apply to a court for an order permitting the cooperative to omit the proposal from a notice of meeting, and the court, if it is satisfied that subsection 58(4) applies, may make any order that it thinks fit.
1998, c. 1, s. 60; 2001, c. 14, s. 154.
61. (1) A cooperative must prepare an alphabetical list of its members as of the record date established under subsection 51(2) or, if the by-laws provide for delegates, of the delegates, who are entitled to receive notice of and vote at a meeting of members.
Entitlement to vote — members’ meetings
(2) Subject to subsection 7(3), a member or delegate whose name appears on the list referred to in subsection (1) is entitled to one vote at a meeting of members.
(3) If a record date for voting is fixed under subsection 51(4), a cooperative must prepare, no later than ten days after the record date, an alphabetical list of shareholders who are entitled to vote as of the record date at a meeting of shareholders that shows the number of investment shares held by each shareholder.
(4) A shareholder named in the list referred to in subsection (3) is entitled to vote the investment shares opposite their name at the meeting to which the list relates.
(5) If a record date for voting is not fixed under subsection 51(4), a cooperative must prepare, not later than ten days after a record date for notice of meeting is fixed under subsection 51(3) or not later than the record date referred to in subsection 51(5), as the case may be, an alphabetical list of shareholders who are entitled to receive notice of a meeting of shareholders as of the record date that shows the number of shares held by each shareholder.
(6) A shareholder whose name appears on the list referred to in subsection (5) is entitled to vote the investment shares shown opposite their name at the meeting to which the list relates, except to the extent that
(a) the shareholder has transferred the ownership of any of those investment shares after the record date, and
(b) the transferee of those investment shares demands, not later than ten days before the meeting, or any shorter period that the by-laws of the cooperative provide, that the transferee’s name be included in the list before the meeting and produces properly endorsed investment share certificates or otherwise establishes that the transferee owns the investment shares,
(7) A person who is entitled to vote at a meeting of a cooperative may examine a list that relates to the meeting
(a) during usual business hours at the registered office of the cooperative or at the place where its records of members and shareholders are maintained; and
62. (1) Unless the by-laws provide otherwise, a quorum is present at a meeting of the cooperative if persons holding a majority of the voting rights that may be exercised at the meeting are present in person or represented in a manner provided for by this Act or permitted by the by-laws.
(2) If a quorum is present at the opening of a meeting, the persons who are present and entitled to vote may, unless the by-laws provide otherwise, proceed with the business of the meeting even though a quorum is not present throughout the meeting.
(3) If a quorum is not present at the opening of a meeting, the persons who are present and entitled to vote may adjourn the meeting to a fixed time and place but may not transact any other business.
63. (1) If an entity is entitled to vote at a meeting of a cooperative, the cooperative must recognize any individual authorized by a resolution of the directors or governing body or similar authority of the entity to represent it at meetings of the cooperative.
(2) An individual who is authorized under subsection (1) to represent an entity may exercise on behalf of the entity all the powers the entity could exercise if it were an individual.
Joint voting — members
64. (1) Unless the by-laws provide otherwise, each joint member may vote at a meeting of members.
Joint voting — shareholders
(2) Unless the articles provide otherwise, if two or more persons hold investment shares jointly, one of those holders present at a meeting of shareholders may, in the absence of the others, vote the investment shares, but if two or more of those persons who are present vote, in person or by proxy, they vote as one on the investment shares jointly held by them.
65. (1) Unless the by-laws provide otherwise, voting at a meeting of a cooperative takes place by a show of hands except when a ballot is demanded by a person who is entitled to vote at the meeting.
(2) A person who is entitled to vote at a meeting may demand a ballot either before or after a vote by show of hands.
(3) Despite subsection (1), unless the by-laws provide otherwise, any vote referred to in subsection (1) may be held, in accordance with the regulations, if any, entirely by means of a telephonic, electronic or other communication facility, if the cooperative makes available such a communication facility.
(4) Unless the by-laws otherwise provide, a member or shareholder participating in a meeting of the cooperative under subsection 48(3) or (3.1) and entitled to vote at that meeting may vote, in accordance with the regulations, if any, by means of the telephonic, electronic or other communication facility that the cooperative has made available for that purpose.
1998, c. 1, s. 65; 2001, c. 14, s. 155.
66. (1) Unless the by-laws provide otherwise, and except when a written statement is submitted under section 89 or subsection 260(4), a resolution in writing signed by all the persons who are entitled to vote on that resolution at a meeting of the cooperative is as valid as if it had been passed at such a meeting.
(2) Unless the by-laws provide otherwise, and except when a written statement is submitted under section 89 or subsection 260(4), a resolution in writing dealing with all matters required by this Act to be dealt with at a meeting of a cooperative, and signed by all the persons who are entitled to vote at the meeting, satisfies all the requirements of this Act relating to meetings.
(3) A copy of every resolution referred to in subsection (1) must be kept with the minutes of the meeting.
67. Unless a ballot is demanded, an entry in the minutes of a meeting to the effect that the chairperson of the meeting declared a resolution to be carried or defeated is, in the absence of evidence to the contrary, proof of the fact without proof of the number or proportion of the votes recorded in favour of or against the resolution.
1998, c. 1, s. 67; 2001, c. 14, s. 156.
68. If a cooperative has only one shareholder, or only one holder of any class or series of investment shares, the shareholder present in person or represented by proxy constitutes a meeting of the shareholders or a meeting of shareholders of that class or series.
69. (1) Two or more persons who together hold not less than five per cent of the voting rights that could be exercised at a meeting of a cooperative may requisition the directors to call such a meeting for the purposes stated in the requisition.
(a) must state the business to be transacted at the meeting and be sent to each director and to the registered office of the cooperative; and
(b) may consist of several documents of like form, each signed by one or more persons who are entitled to vote at the meeting.
Directors calling meeting
(3) On receipt of the requisition, the directors must call a meeting to transact the business stated in the requisition unless
(a) the directors have called a meeting and given notice of it under section 52;
(b) the business of the meeting as stated in the requisition includes matters described in any of paragraphs 58(4)(b) to (e); or
(c) the business of the meeting as stated in the requisition includes a matter
(i) in the case of a requisition by a member, outside the powers of the members, and
(ii) in the case of a requisition by a shareholder, outside the powers of the shareholders.
(4) If the directors do not call a meeting within twenty-one days after receiving the requisition, any person who signed the requisition may call the meeting unless any of paragraphs (3)(a) to (c) applies.
(5) A meeting called under this section must be called as nearly as possible in the manner in which meetings are to be called pursuant to the by-laws, a unanimous agreement and this Act.
(6) Unless the persons who are present and entitled to vote at a meeting called under subsection (4) resolve otherwise, the cooperative must reimburse the persons who signed the requisition for the expenses reasonably incurred by them in requisitioning, calling and holding the meeting.
Other Methods of Calling Meetings
70. (Repealed, 2001, c. 14, s. 157)
Meeting called by court
71. (1) A court, on the application of a director or a person who is entitled to vote at a meeting, may order a meeting of a cooperative to be called, held and conducted within the time and in the manner that the court directs, if
(a) it is not feasible to call the meeting within the time or in the manner in which those meetings are to be called;
(b) it is not feasible to conduct the meeting in the manner required by this Act or the by-laws; or
(c) the court thinks the meeting should be called, held and conducted in the manner it directs for any other reason.
Varying quorum
(2) Without restricting the generality of subsection (1), a court may order that the quorum required by the by-laws or this Act be varied or dispensed with at a meeting called, held and conducted under this section.
1998, c. 1, s. 71; 2001, c. 14, s. 158.
Court review of election
72. (1) A cooperative, a director or any person who is entitled to vote in the election or appointment of a director or an auditor may apply to a court to resolve any dispute in respect of the election or appointment of a director or an auditor of the cooperative.
(2) On an application under subsection (1), a court may make any order it thinks fit, including an order
(a) restraining a director or auditor whose election or appointment is challenged from acting pending determination of the dispute;
(b) declaring the result of a disputed election or appointment;
(c) requiring a new election or appointment, and including in the order directions for the management of the business and affairs of the cooperative until a new election is held or a new appointment is made; or
(d) det