jswizzle3737/ontario_laws_and_regs huggingface dataset:
2 (1) For the purposes of this Act, two or more persons holding the same share or shares jointly are considered as one member or shareholder.  1994, c. 11, s. 2 (1). Exception (2) Despite subsection (1), two or more persons jointly holding enough membership shares to entitle each of them to be a member in their own right are all considered as separate members.  1994, c. 11, s. 2 (2); 2007, c. 7, Sched. 7, s. 2. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 2 - 01/10/2009
3 For the purposes of this Act, a body corporate is a subsidiary of another body corporate if, (a) it is controlled by, (i) that other, (ii) that other and one or more bodies corporate each of which is controlled by that other, or (iii) two or more bodies corporate that are that other’s subsidiary; or (b) it is a subsidiary of a body corporate that is that other’s subsidiary.  1994, c. 11, s. 3.
4 For the purposes of this Act, a body corporate is another’s holding body corporate if that other is its subsidiary.  1994, c. 11, s. 4.
5 (1) For the purposes of this Act, one body corporate is affiliated with another body corporate if one of them is the subsidiary of the other or both are subsidiaries of the same body corporate or each of them is controlled by the same person.  1994, c. 11, s. 5 (1). Affiliate by order (2) On application in writing by a credit union, the Chief Executive Officer may, by order and on the terms specified in the order, deem a corporate body named in the order to be an affiliate for the purposes of this Act or for the purpose of specific provisions of this Act.  1994, c. 11, s. 5 (2); 1997, c. 28, s. 53; 2007, c. 7, Sched. 7, s. 3 (1); 2019, c. 7, Sched. 16, s. 50. Revocation of order (3) The Chief Executive Officer may, by order, revoke an order under subsection (2) if the Chief Executive Officer believes that the credit union has failed to comply with a term set out in the order under subsection (2) or that it is no longer appropriate to deem the corporate body in respect of which the order under subsection (2) was made to be an affiliate.  2007, c. 7, Sched. 7, s. 3 (2); 2019, c. 7, Sched. 16, s. 50. Procedural rules (4) Section 240.1 applies with respect to an order under this section.  2007, c. 7, Sched. 7, s. 3 (2). Section Amendments with date in force (d/m/y) 1997, c. 28, s. 53 - 01/07/1998 2007, c. 7, Sched. 7, s. 3 (1, 2) - 01/10/2009 2018, c. 17, Sched. 11, s. 15 - no effect - see 2019, c. 7, Sched. 16, s. 54 - 29/05/2019 2019, c. 7, Sched. 16, s. 50 - 08/06/2019
6 For the purposes of this Act, a body corporate is controlled by another person or by two or more bodies corporate if, (a) voting securities of the first mentioned body corporate carrying more than 50 per cent of the votes for the election of directors are held, other than by way of security only, by or for the benefit of the other person or by or for the benefit of the other bodies corporate; and (b) the votes carried by the securities are sufficient, if exercised, to elect a majority of the board of directors of the first-mentioned body corporate.  1994, c. 11, s. 6.
7 (1) For the purposes of this Act, a person is a holder of a membership share of a credit union when, according to the register under section 230, the person is the owner of the membership share or is entitled to be entered in the register as the owner of the share.  2007, c. 7, Sched. 7, s. 4. Holder of membership share (2) A reference in this Act to the holding of a membership share by or in the name of a person is a reference to the fact that the person is registered or is entitled to be registered in the register under section 230 as the holder of the share.  2007, c. 7, Sched. 7, s. 4. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 4 - 01/10/2009
8 (1) For the purposes of this Act, a person is a shareholder of a body corporate when, according to the securities register of the body corporate, the person is the owner of a share of the body corporate or is entitled to be entered in the securities register or like record of the body corporate as the owner of a share. Holder of a share (2) A reference in this Act to the holding of a share by or in the name of any person is a reference to the fact that the person is registered or is entitled to be registered in the securities register or a similar register of the body corporate as the holder of that share.  1994, c. 11, s. 8. Part II (ss. 9-11) Repealed:  2007, c. 7, Sched. 7, s. 5. 9 Repealed:  2007, c. 7, Sched. 7, s. 5. Section Amendments with date in force (d/m/y) 1997, c. 28, s. 54 - 01/07/1998 2007, c. 7, Sched. 7, s. 5 - 01/10/2009 10 Repealed:  2007, c. 7, Sched. 7, s. 5. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 5 - 01/10/2009 11 Repealed:  2007, c. 7, Sched. 7, s. 5. Section Amendments with date in force (d/m/y) 1997, c. 28, s. 55 - 01/07/1998 2007, c. 7, Sched. 7, s. 5 - 01/10/2009 PART III   ESTABLISHING A CREDIT UNION Incorporation
12 (1) The certificate of incorporation, articles of incorporation and the by-laws of a credit union, together with this Act, constitute the charter of the credit union. Date of incorporation (2) A credit union comes into existence on the date set out in the certificate of incorporation.  1994, c. 11, s. 12.
13 (1) Twenty or more individuals may incorporate a credit union by signing articles of incorporation and complying with section 15.  1994, c. 11, s. 13 (1). Restriction (2) An individual is disqualified from being an incorporator if he or she, (a) is less than eighteen years of age; (b) has been found under the Substitute Decisions Act, 1992 or under the Mental Health Act
to be incapable of managing property or has been found to be incapable by a court in Canada or elsewhere; or (c) is an undischarged bankrupt or has been discharged as a bankrupt in the five years preceding the date the application to incorporate the credit union is made under subsection 15 (1).  1994, c. 11, s. 13 (2); 2007, c. 7, Sched. 7, s. 6; 2009, c. 33, Sched. 2, s. 21 (1). Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 6 - 01/10/2009 2009, c. 33, Sched. 2, s. 21 (1) - 15/12/2009
14 (1) The articles of incorporation must set out the prescribed information.  2007, c. 7, Sched. 7, s. 7. Same (2) The articles may include any provision that is permitted under this Act to be set out in the articles or that could be the subject of a by-law of the credit union.  1994, c. 11, s. 14 (2). Same (3) The articles must set out any restrictions on the business that the credit union may carry on or on the powers that the credit union may exercise.  1994, c. 11, s. 14 (3). First directors (4) The articles must name at least five individuals who hold office as first directors of the credit union.  1994, c. 11, s. 14 (4). Affidavit (5) An affidavit verifying the following matters must accompany the articles: 1. The signature of each incorporator and each first director. 2. The fact that each incorporator and first director meet the criteria for eligibility under subsection 13 (2) and section 91, as applicable, and that each first director is not disqualified to be a director under section 92.  1994, c. 11, s. 14 (5). Where consent required (6) If a person who is not an incorporator is named in the articles as a first director, his or her consent to act as a first director must accompany the articles.  1994, c. 11, s. 14 (6). Form of consent (7) The consent must be in a form approved by the Chief Executive Officer.  1994, c. 11, s. 14 (7); 1997, c. 28, s. 53; 2018, c. 8, Sched. 7, s. 5. Section Amendments with date in force (d/m/y) 1997, c. 28, s. 53 - 01/07/1998 2007, c. 7, Sched. 7, s. 7 - 01/10/2009 2018, c. 8, Sched. 7, s. 5 - 08/06/2019
15 (1) An application to incorporate a credit union may be made by sending to the Chief Executive Officer two copies of the proposed articles of incorporation and the proposed by-laws of the credit union and paying the application fee established by the Minister or by Authority rule.  2007, c. 7, Sched. 7, s. 8 (1); 2018, c. 8, Sched. 7, s. 5; 2019, c. 7, Sched. 16, s. 2. Inquiry before incorporation (2) The Chief Executive Officer shall inquire into the circumstances, sufficiency and regularity of the articles and by-laws and may do any of the following before issuing a certificate of incorporation: 1. Require the incorporators to provide such additional information as the Chief Executive Officer considers relevant to the application. 2. Require any matter set out in the articles or by-laws or in the additional information provided to the Chief Executive Officer to be verified under oath. 3. Require the articles or by-laws to be amended if the Chief Executive Officer considers that they are inconsistent with this Act or the regulations.  1994, c. 11, s. 15 (2); 1997, c. 28, s. 53; 2007, c. 7, Sched. 7, s. 8 (2); 2018, c. 8, Sched. 7, s. 5. Section Amendments with date in force (d/m/y) 1997, c. 28, s. 53 - 01/07/1998 2007, c. 7, Sched. 7, s. 8 (1, 2) - 01/10/2009 2018, c. 8, Sched. 7, s. 5 - 08/06/2019 2019, c. 7, Sched. 16, s. 2 - 08/06/2019
16 (1) Subject to subsection (2), the Chief Executive Officer shall issue a certificate of incorporation to the incorporators.  2007, c. 7, Sched. 7, s. 9 (1); 2018, c. 8, Sched. 7, s. 5. Grounds for refusing certificate (2) The Chief Executive Officer shall not issue a certificate of incorporation if the articles do not meet the requirements of section 14 or 15 or if the incorporators do not satisfy the Chief Executive Officer of the following matters: 1. The plans for the conduct and development of the business of the credit union are feasible and sound. 2. The credit union will be operated in accordance with co-operative principles. 3. The credit union will be operated in such a way that deposits will be safeguarded without the likelihood of a claim against the Authority. 4. The credit union will be operated responsibly by individuals who, by virtue of their character, competence and experience, are suited to operating a financial institution. 5. The incorporation of the credit union will serve the best interests of the co-operative financial system in Ontario.  1994, c. 11, s. 16 (2); 2007, c. 7, Sched. 7, s. 9 (2, 3); 2018, c. 8, Sched. 7, s. 5; 2019, c. 7, Sched. 16, s. 49. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 9 (1-3) - 01/10/2009 2018, c. 8, Sched. 7, s. 5 - 08/06/2019; 2018, c. 17, Sched. 11, s. 15 - no effect - see 2019, c. 7, Sched. 16, s. 54 - 29/05/2019 2019, c. 7, Sched. 16, s. 49 - 08/06/2019
17 (1) A certificate of incorporation is conclusive proof that the incorporators have complied with all conditions precedent to incorporating a credit union and that the credit union was incorporated under this Act on the date set out in the certificate. Exception (2) Subsection (1) does not apply in a proceeding under section 301.  1994, c. 11, s. 17.
18 If the Chief Executive Officer decides, after giving the applicants for incorporation an opportunity to make written submissions, not to issue a certificate of incorporation, he or she shall notify the incorporators, in writing, and set out the reasons for the decision.  2007, c. 7, Sched. 7, s. 10; 2018, c. 8, Sched. 7, s. 5. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 10 - 01/10/2009 2018, c. 8, Sched. 7, s. 5 - 08/06/2019
19 (1) The corporate name of a credit union must be in the language and form authorized in the articles and approved by the Chief Executive Officer.  2007, c. 7, Sched. 7, s. 10; 2018, c. 8, Sched. 7, s. 5. Use of “credit union” (2) Subject to subsections (3) and (4), the corporate name of a credit union must include the words “credit union” or “caisse populaire”.  2007, c. 7, Sched. 7, s. 10. Use of “caisse populaire” (3) Only a corporation incorporated under this Act or a predecessor of this Act that provides financial services to its members and promotes the interests of the French-speaking community in Ontario by providing management and democratic control in French may include “caisse populaire” in its corporate name, and all other corporations incorporated under this Act or a predecessor of this Act shall include “credit union” in their corporate names.  2007, c. 7, Sched. 7, s. 10. Use of “Limited”, etc. (4) The corporate name of a credit union must have at the end of it one of the following: “Limited”, “Ltd”, “Limitée”, “Ltée”, “incorporated”, “incorporée” or “Inc”.  2007, c. 7, Sched. 7, s. 10. Section Amendments with date in force (d/m/y) 1997, c. 28, s. 53 - 01/07/1998; 1999, c. 12, Sched. I, s. 2 (1) - 22/12/1999 2007, c. 7, Sched. 7, s. 10 - 01/10/2009 2018, c. 8, Sched. 7, s. 5 - 08/06/2019
19.1 (1) A credit union shall not carry on business under or identify itself by a name other than its corporate name unless the Chief Executive Officer has approved that name.  2007, c. 7, Sched. 7, s. 11; 2018, c. 8, Sched. 7, s. 5. Restriction on approval (2) The Chief Executive Officer shall not approve a name under subsection (1), (a) if the name includes “credit union” or “caisse populaire”, unless the name is derived from the credit union’s corporate name; or (b) if the name would be precluded as a corporate name under section 21.  2007, c. 7, Sched. 7, s. 11; 2018, c. 8, Sched. 7, s. 5. Corporate name to be used in all documents (3) A credit union shall set out its corporate name in legible characters in all documents that evidence rights or obligations with respect to other parties (including contracts, invoices and negotiable instruments) and that are issued or made by or on behalf of the credit union.  1999, c. 12, Sched. I, s. 2 (2). Section Amendments with date in force (d/m/y) 1999, c. 12, Sched. I, s. 2 (2) - 22/12/1999 2007, c. 7, Sched. 7, s. 11 - 01/10/2009 2018, c. 8, Sched. 7, s. 5 - 08/06/2019
20 No person, other than a credit union or prescribed person or entity, shall carry on business using a name in which “credit union” or “caisse populaire” is used.  2007, c. 7, Sched. 7, s. 12. Section Amendments with date in force (d/m/y) 1999, c. 12, Sched. I, s. 2 (3) - 22/12/1999 2007, c. 7, Sched. 7, s. 12 - 01/10/2009
21 (1) A credit union may not be incorporated under this Act with a corporate name that, (a) is prohibited under an Act of the Parliament of Canada or a province or territory of Canada; (b) does not meet the prescribed requirements; (c) is reserved under section 22 for another credit union; (d) is the same as or confusingly similar to any existing trade-mark or trade name or corporate name of a body corporate; (e) is the same as or confusingly similar to the known name under or by which another entity carries on business or is identified; (f) contains a word or phrase that indicates or suggests that it is incorporated for any object other than one set out in its articles; or (g) is deceptively misdescriptive.  1994, c. 11, s. 21 (1); 2007, c. 7, Sched. 7, s. 13 (1). Exception re trade-marks, etc. (2) Clause (1) (d) does not apply if the Chief Executive Officer is satisfied that, (a) the trade-mark or trade name is being changed or the body corporate is being dissolved or is changing its corporate name; and (b) in the case of a corporate name, there is consent to the use of the corporate name.  1994, c. 11, s. 21 (2); 1997, c. 28, s. 53; 2018, c. 8, Sched. 7, s. 5. Exception for affiliates (3) Clauses (1) (d) and (e) do not apply with respect to a credit union that is affiliated with another entity if the Chief Executive Officer is satisfied that the entity consents to it having a corporate name substantially similar to the entity’s name.  2007, c. 7, Sched. 7, s. 13 (2); 2018, c. 8, Sched. 7, s. 5. Change of corporate name (4) If a credit union has acquired a corporate name contrary to subsection (1), the Chief Executive Officer may, by order, issue a certificate of amendment to the articles changing the name of the credit union.  2007, c. 7, Sched. 7, s. 13 (2); 2018, c. 8, Sched. 7, s. 5. Procedural rules (5) Section 240.1 applies with respect to an order under subsection (4).  2007, c. 7, Sched. 7, s. 13 (2). Section Amendments with date in force (d/m/y) 1997, c. 28, s. 53 - 01/07/1998 2007, c. 7, Sched. 7, s. 13 (1, 2) - 01/10/2009 2018, c. 8, Sched. 7, s. 5 - 08/06/2019
22 (1) A person may reserve a corporate name for a period of up to 90 days by making an application to the Chief Executive Officer and paying the fee established by the Minister or by Authority rule.  2007, c. 7, Sched. 7, s. 14; 2018, c. 8, Sched. 7, s. 5; 2019, c. 7, Sched. 16, s. 3. Effect of reservation (2) During the period that the corporate name is reserved, a body corporate is not entitled to acquire the name or a similar name without the written consent of the person for whose use and benefit the name is reserved.  2007, c. 7, Sched. 7, s. 14. Renewal of reservation of corporate name (3) Within 30 days before the expiry of the reservation of a corporate name under subsection (1), the person who reserved the name may apply for a renewal of the reservation for a further period of not more than 90 days by submitting an application for the renewal to the Chief Executive Officer and paying the fee established by the Minister or by Authority rule.  2007, c. 7, Sched. 7, s. 14; 2018, c. 8, Sched. 7, s. 5; 2019, c. 7, Sched. 16, s. 3. Section Amendments with date in force (d/m/y) 1997, c. 19, s. 5 (1) - 10/10/1997; 1997, c. 28, s. 53 - 01/07/1998 2007, c. 7, Sched. 7, s. 14 - 01/10/2009 2018, c. 8, Sched. 7, s. 5 - 08/06/2019 2019, c. 7, Sched. 16, s. 3 - 08/06/2019
22.1 A credit union may, but need not, have a corporate seal.  2007, c. 7, Sched. 7, s. 14. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 14 - 01/10/2009
23 (1) A credit union shall have its head office in Ontario at the place indicated in its articles. Change (2) A credit union may by articles of amendment change the location of its head office to another place in Ontario.  1994, c. 11, s. 23. Objects and Powers
24 (1) The object of a credit union is to provide on a co-operative basis financial services primarily for its members.  1994, c. 11, s. 24 (1). Co-operative basis (2) A credit union shall operate on a co-operative basis such that, (a) membership is voluntary and is open to those that fall within its bond of association; (b) its business is carried on primarily for the benefit of its members; (c) the net income that accrues from its business is, (i) used to provide services for its members, (ii) used to develop its business, (iii) used to increase its reserves or retained earnings, (iv) distributed to its members and shareholders, or (v) used for another purpose approved by the members; and (d) each member has only one vote at its general meetings or in respect of elections of its directors.  1994, c. 11, s. 24 (2); 2007, c. 7, Sched. 7, s. 15 (1). Exception (3) Clause (2) (d) does not prevent a member from voting as a proxy holder as allowed under section 217.3.  2007, c. 7, Sched. 7, s. 15 (2). Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 15 (1, 2) - 01/10/2009
25 (1) A credit union has the capacity of a natural person and, subject to this Act, the rights, powers and privileges of a natural person. Powers outside Ontario (2) A credit union may exercise its powers outside of Ontario to the extent permitted under the laws of the applicable jurisdiction. Extra-provincial powers (3) A credit union may accept extra-provincial powers and rights.  1994, c. 11, s. 25.
26 (1) No act of a credit union and no transfer of real or personal property to or by a credit union before or after this section comes into force, that is otherwise lawful, is invalid because the credit union was without capacity or power to do the act or make or receive the transfer, but a lack of capacity or power may be asserted, (a) in a proceeding against the credit union by a member under subsection (2); (b) in a proceeding by the credit union, whether acting directly or through a receiver, liquidator, trustee or their legal representative or through members in a representative capacity, against a director or officer or former director or officer of the credit union; or (c) as a cause for the cancellation of the certificate of incorporation of the credit union. Restraining order (2) A member of a credit union may apply to court for an order restraining the credit union from doing any act on the ground that the credit union lacks capacity to do so. Granting order (3) Subject to subsection (4), the court may, if it considers it to be just and equitable, grant the order. Where contract (4) If the act or transfer that the member seeks to restrain is to be done under a contract to which the credit union is a party, (a) all the parties to the contract are parties to the proceedings; (b) the court may, (i) grant the order and set aside the contract, and (ii) award compensation to the credit union or other parties to the contract for any damages or loss, other than anticipated profits from the contract, sustained by them because the order is granted and the contract is set aside.  1994, c. 11, s. 26. Miscellaneous
27 (1) A credit union or a guarantor of an obligation of one shall not assert against a person dealing with the credit union or with a person who has acquired rights from the credit union any of the following matters: 1. The articles or by-laws have not been complied with. 2. The individuals named in the most recent notice filed under the Corporations Information Act or named in the articles, whichever is more current, are not the directors of the credit union. 3. The location of its head office indicated in a notice filed under the Corporations Information Act, as named in the by-laws, or named in the articles, whichever is more current, is not the head office of the credit union. 4. A person held out by the credit union as a director, officer or agent has not been duly appointed or does not have authority to exercise the powers and perform the duties that are customary in the business of the credit union or usual for the director, officer or agent. 5. A document issued by a director, officer or agent of the credit union with actual or usual authority to issue the document is not valid or not genuine. 6. Financial assistance was not authorized. 7. The sale, lease, exchange or disposition of property of the credit union was not authorized under section 204. Exception (2) Subsection (1) does not apply if the person has or ought to have knowledge of the matter by virtue of his, her or its position with or relationship to the credit union.  1994, c. 11, s. 27 (1, 2). No deemed notice (3) No person is affected by or is deemed to have knowledge of the contents of a document concerning a credit union by reason only that the document has been filed with the Chief Executive Officer or is available for inspection at an office of the credit union.  1994, c. 11, s. 27 (3); 1997, c. 28, s. 53; 2018, c. 8, Sched. 7, s. 5. Section Amendments with date in force (d/m/y) 1997, c. 28, s. 53 - 01/07/1998 2018, c. 8, Sched. 7, s. 5 - 08/06/2019
27.1 (1) The financial year of a credit union must end on December 31.  2007, c. 7, Sched. 7, s. 16. Existing financial years with different year ends (2) The following apply if, on the day this section comes into force, a credit union’s financial year ends on a date other than December 31: 1. The credit union’s financial year need not be changed. 2. If the credit union’s financial year is changed, it must be changed so that it ends on December 31.  2007, c. 7, Sched. 7, s. 16. Special rule not to apply to amalgamated credit unions (3) Subsection (2) does not apply to a credit union formed by the amalgamation of two or more credit unions after the day this section comes into force; in such a case, the financial year of the amalgamated credit union must end on December 31.  2007, c. 7, Sched. 7, s. 16. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 16 - 01/10/2009
27.2 The Corporations Act does not apply to credit unions.  2007, c. 7, Sched. 7, s. 16. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 16 - 01/10/2009 PART IV   MEMBERSHIP Who May Be Member
28 (1) Membership in a credit union is governed by the credit union’s by-laws, subject to the provisions of this Act and the credit union’s articles.  2007, c. 7, Sched. 7, s. 17. Minimum membership shares required (2) To be a member, a person or entity must hold the minimum number of membership shares required under the by-laws of the credit union.  2007, c. 7, Sched. 7, s. 17. Member who ceases to hold the minimum (3) A member who ceases to hold enough shares to be a member shall, nonetheless, continue to be a member of the credit union for the purposes of this Act, subject to any limitations in the by-laws of the credit union, including limitations on the rights that member may exercise.  2007, c. 7, Sched. 7, s. 17. Ground for expulsion (4) For greater certainty, subsection (3) does not prevent holding fewer than the minimum number of shares from being set out in the by-laws of the credit union as a ground for expulsion under subsection 47 (1).  2007, c. 7, Sched. 7, s. 17. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 17 - 01/10/2009
29 (1) Each incorporator of a credit union who has subscribed for a membership share in the credit union becomes a member upon the effective date of incorporation. Subscription deemed application (2) A subscription for the number of membership shares in a credit union required by the by-laws of the credit union constitutes an application for membership and the issue of a membership share to the applicant constitutes admission to membership. Applicants for membership (3) Subject to subsection (1), no person shall become a member of a credit union until the person’s application for membership has been approved by the board or an employee authorized by the board and the applicant has complied fully with the by-laws governing admission of members.  1994, c. 11, s. 29.
30 (1) The by-laws of every credit union shall provide that the membership of the credit union is limited to persons, related persons and entities who come within a bond of association and shall specify the nature of the bond of association.  2007, c. 7, Sched. 7, s. 18 (1). (2) Repealed:  2007, c. 7, Sched. 7, s. 18 (1). Exception (3) Despite subsection (1), the by-laws may provide that an employee of a credit union may become a member.  1994, c. 11, s. 30 (3). (4)-(7) Repealed:  2007, c. 7, Sched. 7, s. 18 (2). Section Amendments with date in force (d/m/y) 1997, c. 28, s. 53 - 01/07/1998 2002, c. 18, Sched. H, s. 3 (2) - 26/11/2002 2007, c. 7, Sched. 7, s. 18 (1, 2) - 01/10/2009
31 (1) If the credit union’s by-laws permit it to do so, the board may admit, as a member of the credit union, any person or entity who does not come within the bond of association in the following circumstances: 1. The number of members who do not come within the bond of association does not exceed 3 per cent of the number of members in the credit union. 2. The admission of specific members who do not come within the bond of association is approved by the board. 3. Members who do not come within the bond of association must be identified as such in the register under section 230.  1994, c. 11, s. 31 (1); 2007, c. 7, Sched. 7, s. 19. Same (2) A person or entity admitted as a member who does not come within the bond of association has all the rights and obligations of membership.  1994, c. 11, s. 31 (2). Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 19 - 01/10/2009
32 (1) If authorized by the by-laws, a member who no longer falls within the bond of association may retain membership in the credit union. Exception (2) Section 31 does not apply to members who retain their membership under subsection (1).  1994, c. 11, s. 32.
33 (1) Every person or entity whose name is registered in the register under section 230 is entitled to, (a) a record specifying the amount paid upon membership shares, deposits and loans by the person or entity; and (b) such other information as may be prescribed by the by-laws of the credit union.  1994, c. 11, s. 33 (1); 2007, c. 7, Sched. 7, s. 20. Same (2) The record referred to in clause (1) (a) is admissible in evidence as proof, in the absence of evidence to the contrary, of membership and of the information entered therein.  1994, c. 11, s. 33 (2). Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 20 - 01/10/2009
34 Her Majesty the Queen in right of Ontario or in right of Canada or a corporation including a municipality as defined in the Municipal Affairs Act, an unincorporated association or a partnership registered under the Business Names Act or a predecessor thereof may become a member of a credit union on such conditions as are prescribed.  1994, c. 11, s. 34. 35 Repealed:  2007, c. 7, Sched. 7, s. 21. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 21 - 01/10/2009 36 Repealed:  2007, c. 7, Sched. 7, s. 21. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 21 - 01/10/2009 Rights and Liabilities
37 The members of a credit union are not, by reason only of holding membership shares of a credit union, liable for any liability, act or default of the credit union except as otherwise provided by this Act.  1994, c. 11, s. 37.
38 (1) A credit union is not bound to see to the execution of any trust to which any membership share is subject.  2007, c. 7, Sched. 7, s. 22. Application (2) Subsection (1) applies whether the trust is express, implied or constructive.  2007, c. 7, Sched. 7, s. 22. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 22 - 01/10/2009
39 (1) A credit union may accept deposits from a member in trust for a named beneficiary only if, (a) the member holds, in trust for the beneficiary, the minimum number of membership shares required under subsection 28 (2); (b) the member and the beneficiary are related persons; (c) the deposits are money the member is required to hold in accordance with subsection 57 (1) of the Law Society Act; or (d) the deposits are required or governed by an Act of the Legislature or the Parliament of Canada or by a regulation made under such an Act.  2007, c. 7, Sched. 7, s. 22; 2009, c. 34, Sched. H, s. 1. Deposit is separate for deposit insurance purposes (2) A deposit of a member in trust for a named beneficiary shall be deemed, for the purpose of paragraph 2 of subsection 270 (2), to be a deposit separate from any other deposit of the member.  2007, c. 7, Sched. 7, s. 22. Exercise of rights of membership shares held in trust (3) The following apply with respect to membership shares held by a member in trust for a beneficiary: 1. The member shall exercise the rights attached to the shares, subject to paragraph 2. 2. At a meeting of members, the member does not have an additional vote as a result of holding the membership shares in trust.  2007, c. 7, Sched. 7, s. 22. Disclosure of beneficiary (4) The member shall disclose to the credit union such personal information concerning the beneficiary as the credit union requires to comply with all applicable laws.  2007, c. 7, Sched. 7, s. 22. Failure to disclose (5) A credit union may refuse to accept or maintain a deposit made by a member in trust for a named beneficiary if the member refuses or fails to provide the information referred to in subsection (4).  2007, c. 7, Sched. 7, s. 22. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 22 - 01/10/2009 2009, c. 34, Sched. H, s. 1 - 15/12/2009
40 Two or more members may hold their membership shares and deposits in a joint account and, in the absence of written notice to the contrary, payment by the credit union to any of the members or to the survivor or any of the survivors of the members of any money standing to the credit of the joint share or deposit account discharges the credit union from any further liability for such payment.  1994, c. 11, s. 40.
41 If permitted by the by-laws of a credit union, a person under the age of 18 years may be a member of the credit union, subject to such conditions and restrictions as may be set out in the by-laws.  2007, c. 7, Sched. 7, s. 23. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 23 - 01/10/2009 Death, etc.
42 (1) If a member of a credit union dies and the credit union makes a payment of an amount described in subsection (2) to such person as the credit union is satisfied is entitled to receive the amount, the payment discharges any obligation of the credit union and its board in respect of and to the extent of the amount paid even if the payment is made without letters probate or letters of administration being taken out.  2007, c. 7, Sched. 7, s. 24. Type of payments (2) The payment referred to in subsection (1) is a payment of the following: 1. An amount not exceeding the prescribed amount payable from the amount on deposit in the name of the deceased or in consideration for the membership shares of the deceased. 2. An amount not exceeding the prescribed amount payable from any money that is received by the credit union under any policy of insurance on the life of the deceased.  2007, c. 7, Sched. 7, s. 24. Restrictions (3) Subsection (1) applies only if the credit union pays the amount in good faith and the credit union receives, before the payment, (a) a statutory declaration attesting to the person’s entitlement to receive the amount; or (b) such other evidence of the person’s entitlement to the amount as the credit union considers to be appropriate in the circumstances.  2007, c. 7, Sched. 7, s. 24. Credit union can require more (4) Nothing in this section prevents the credit union from requiring additional documentation or evidence as the credit union considers appropriate.  2007, c. 7, Sched. 7, s. 24. Recovery from recipient (5) Subsection (1) does not affect any right of a person claiming to be entitled to recover the amount from the person to whom it was paid.  2007, c. 7, Sched. 7, s. 24. No limit on other powers, requirements (6) For greater certainty, this section does not prevent a credit union from making a payment or transfer as otherwise allowed or required by law.  2007, c. 7, Sched. 7, s. 24. If deceased member was trustee (7) If a member of a credit union dies holding membership shares or money on deposit in trust for a named beneficiary, the credit union may pay the amount of, or transfer, the membership shares or deposit and any interest or dividends on them, (a) to the executor or administrator of the estate of the deceased member; or (b) to the beneficiary if there is no executor or administrator of the estate of the deceased member or, if the beneficiary is a minor, to the beneficiary’s parent or guardian.  2007, c. 7, Sched. 7, s. 24; 2021, c. 4, Sched. 11, s. 5 (1). Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 24 - 01/10/2009 2021, c. 4, Sched. 11, s. 5 (1) - 19/04/2021 43 Repealed:  2007, c. 7, Sched. 7, s. 24. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 24 - 01/10/2009 Liens
44 (1) A credit union has a lien on the deposits and membership shares of a member for any liability to it by the member, and may set off any sum standing to the credit of the member on the books of the credit union towards the payment of the liability.  2007, c. 7, Sched. 7, s. 25. Limitation, member’s share account (2) Despite subsection (1), a credit union shall not apply any service charges or other deductions against a member’s share account except upon the termination of the membership.  2007, c. 7, Sched. 7, s. 25. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 25 - 01/10/2009 45 Repealed:  2007, c. 7, Sched. 7, s. 25. Section Amendments with date in force (d/m/y) 1994, c. 11, s. 45 (5) - no effect 2007, c. 7, Sched. 7, s. 25 - 01/10/2009 Withdrawals and Expulsions
46 (1) A member of a credit union may withdraw from the credit union at any time by giving notice in accordance with the by-laws.  1994, c. 11, s. 46 (1). Same (2) A deceased member shall be deemed to have given notice to the credit union of intention to withdraw on the day of his or her death.  1994, c. 11, s. 46 (2). Rights of withdrawing member (3) The by-laws of a credit union shall set out the rights of a withdrawing member which shall include the right to receive payment for the member’s membership shares, subject to subsection 62 (3), and the return of any money on deposit and property held by the credit union.  2007, c. 7, Sched. 7, s. 26. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 26 - 01/10/2009
47 (1) A member of a credit union may be expelled from membership, in accordance with the by-laws, by a resolution of the board on the grounds set out in the by-laws.  2007, c. 7, Sched. 7, s. 27 (1). Member rights relating to expulsion (2) The by-laws of a credit union shall provide for the following rights: 1. The right of a member to receive advance notice of any meeting of the board at which the board will consider a resolution to expel the member. 2. The right of the member not to be expelled without being given an opportunity to appear at the meeting of the board to make submissions and to be represented at the meeting by a person authorized under the Law Society Act to represent the member. 3. The right of an expelled member to appeal the decision of the board at the next general meeting of the members. 4. The right of the expelled member to be reinstated as a member of the credit union if, at the next general meeting, the members, by a majority of the votes cast at the meeting, set aside the resolution of the board. 5. The right of the expelled member to receive payment for the member’s membership shares, subject to subsection 62 (3), and the return of any money on deposit and property held by the credit union.  2007, c. 7, Sched. 7, s. 27. Procedures to be set out in by-laws (3) The by-laws of a credit union shall set out the following: 1. The procedures to be followed by the board to provide the advance notice referred to in paragraph 1 of subsection (2). 2. The procedures to be followed relating to the appeal referred to in paragraph 3 of subsection (2).  2007, c. 7, Sched. 7, s. 27 (1). Notice of decision (4) If the board passes a resolution expelling a member, the credit union shall, within five days after the resolution is passed, notify the member of the decision of the board by registered letter addressed to the member at the member’s last known address.  2007, c. 7, Sched. 7, s. 27 (1). Section Amendments with date in force (d/m/y) 2006, c. 21, Sched. C, s. 106 (1) - 01/05/2007 2007, c. 7, Sched. 7, s. 27 (1, 2) - 01/10/2009 48 Repealed:  2007, c. 7, Sched. 7, s. 27 (1). Section Amendments with date in force (d/m/y) 1997, c. 28, s. 53 - 01/07/1998 2007, c. 7, Sched. 7, s. 27 (1) - 01/10/2009 49 Repealed:  2007, c. 7, Sched. 7, s. 27 (1). Section Amendments with date in force (d/m/y) 2002, c. 18, Sched. H, s. 3 (3) - 26/11/2002 2007, c. 7, Sched. 7, s. 27 (1) - 01/10/2009 Representative Actions by Members
50 (1) Subject to subsection (2), a member of a credit union may maintain an action in a court of competent jurisdiction in a representative capacity for the member and all other members of the credit union suing for and on behalf of the credit union to enforce any right, duty or obligation owed to the credit union under this Act or under any other statute or rule of law or equity that could be enforced by the credit union itself, or to obtain damages for any breach of any such right, duty or obligation. Court order required (2) An action under subsection (1) shall not be started until the member has obtained an order of the court permitting the start of the action. Application to court (3) A member may, upon at least seven days notice to the credit union, apply to the court for an order referred to in subsection (2). Court order (4) The court may make the order upon such conditions as the court thinks fit if the court is satisfied that, (a) the member was a member of the credit union at the time of the transaction or other event giving rise to the cause of action; (b) the member has made reasonable efforts to cause the credit union to start or prosecute diligently the action on its own behalf; and (c) the member is acting in good faith and it is apparently in the interests of the credit union or its members that the action be started. Costs (5) At any time while an action started under this section is pending, the plaintiff may apply to the court for an order for the payment to the plaintiff by the credit union of reasonable interim costs, including solicitor’s and counsel fees and disbursements. Accountability for costs (6) The plaintiff is accountable to the credit union for the interim costs if the action is dismissed on final disposition at the trial or on appeal. Action, court approval (7) An action started under this section shall not be discontinued, settled or dismissed for want of prosecution without the approval of the court. Same (8) If the court determines that the interests of the members or any class of members may be substantially affected by a discontinuance, settlement or dismissal, the court, may direct that notice in manner, form and content satisfactory to the court shall be given, at the expense of the credit union or any other party to the action as the court directs, to the members or class of members whose interests the court determines may be affected.  1994, c. 11, s. 50. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 28 - 01/10/2009 PART V   CAPITAL STRUCTURE Shares
51 (1) The articles of a credit union must provide for a class of shares known as membership shares and may provide for additional classes of shares, including patronage shares referred to in section 53.  2007, c. 7, Sched. 7, s. 29. Nature of shares (2) The shares of a credit union are personal property.  2007, c. 7, Sched. 7, s. 29. Form (3) The shares of a credit union are without nominal or par value and, if they are not membership shares or patronage shares, must be in registered form.  2007, c. 7, Sched. 7, s. 29. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 29 - 01/10/2009
52 (1) Membership shares confer on the holder the right to receive dividends declared on the shares and to receive the remaining property of the credit union on dissolution.  2007, c. 7, Sched. 7, s. 30. Number of shares that member can hold (2) Subject to any prescribed limit or limit set out in the by-laws of the credit union, a member may hold more than the minimum number of membership shares required under subsection 28 (2) to be a member.  2007, c. 7, Sched. 7, s. 30. Transfer prohibited (3) The holder of a membership share may not transfer an interest in the share to a person other than the credit union or another credit union and any transaction that purports to make such a transfer is void.  2007, c. 7, Sched. 7, s. 30. (4) Repealed:  2007, c. 7, Sched. 7, s. 30. Certificates not mandatory (5) The by-laws of a credit union may provide that membership share certificates need not be issued but, if this is the case, the credit union shall give each member who requests one a statement of the number of membership shares held by the member.  1994, c. 11, s. 52 (5). Certificates (6) Membership share certificates issued after this subsection comes into force must include such information as may be prescribed.  1994, c. 11, s. 52 (6). Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 30 - 01/10/2009
53 (1) The articles of a credit union may provide for a class of shares known as patronage shares to be payable to members as a dividend under section 65 or as a patronage return under section 66.  2007, c. 7, Sched. 7, s. 31. Nature of share (2) A patronage share does not confer on the holder the right to vote at meetings of the members of the credit union, the right to notice of any meeting of members of the credit union, the right to receive dividends or the right to receive the remaining property of the credit union on dissolution.  2007, c. 7, Sched. 7, s. 31. Transfer prohibited (3) The holder of a patronage share may not transfer an interest in the share to a person other than the credit union or another credit union and any transaction that purports to make such a transfer is void.  2007, c. 7, Sched. 7, s. 31. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 31 - 01/10/2009
53.1 (1) For each class of shares, the articles must set out, (a) the rights, privileges, restrictions and conditions attaching to the shares of the class; and (b) the maximum number, if any, of shares of the class that the credit union is authorized to issue.  2007, c. 7, Sched. 7, s. 31. Restrictions (2) Shares, other than membership shares, do not confer on their holder the right to vote at meetings of the members of the credit union except as permitted under this Act or the right to receive any of the remaining property of the credit union on dissolution.  2007, c. 7, Sched. 7, s. 31. Section Amendments with date in force (d/m/y) 2007, c. 7, Sched. 7, s. 31 - 01/10/2009
54 (1) The articles of a credit union may authorize the issue of any class of shares, other than membership shares, in one or more series and may fix the number of shares in, and set out the designation, rights, privileges, restrictions and conditions attaching to the shares of each series.  1994, c. 11, s. 54 (1); 2007, c. 7, Sched. 7, s. 32 (1). Same (2) The articles may authorize the board to fix the maximum number, if any, of shares in each series and to determine the designation, rights, privileges, restrictions and conditions attaching to the shares of each series, subject to the limitations set out in the articles and the limitations under this Act.  1994, c. 11, s. 54 (2); 2007, c. 7, Sched. 7, s. 32 (2). Series participation (3) If any cumulative dividend or amounts payable on return of capital in respect of a series of shares are not paid in full, the shares of all series of the same class participate rateably in respect of accumulated dividends and return of capital.  1994, c. 11, s. 54 (3). Voting rights (4) If voting rights are attached to any series of a class of shares, the shares of every other series of that class have the same voting rights.  1994, c. 11, s. 54 (4). Restriction on series (5) No rights, privileges, restrictions or conditions attached to a series of shares confer on the series a priority in respect of dividends or return of capital over any other series of shares of the same class that are then outstanding.  1994, c. 11, s. 54 (5). Information to Chief Executive Officer (6) Before issuing shares in series, the credit union must file with the Chief Executive Officer articles of amendment designating the series and setting out the rights, privileges, restrictions and conditions attaching to the shares.  2007, c. 7, Sched. 7, s. 32 (3); 2018, c. 8, Sched. 7, s. 5. (7) Repealed:  2007, c. 7, Sched. 7, s. 32 (3). Section Amendments with date in force (d/m/y) 1997, c. 19, s. 5 (2) - 10/10/1997; 1997, c. 28, s. 53 - 01/07/1998; 1999, c. 12, Sched. I, s. 2 (4) - 22/12/1999 2007, c. 7, Sched. 7, s. 32 (1-3) - 01/10/2009 2018, c. 8, Sched. 7, s. 5 - 08/06/2019 55 Repealed:  2007, c. 7, Sched. 7, s. 33. Section Amendments with date in force (d/m/y) 1997, c. 28, s. 53 - 01/07/1998 2007, c. 7, Schd. 7, s. 33 - 01/10/2009