Canada Cooperatives Act (S.C. 1998, c. 1)

Act current to 2018-07-05 and last amended on 2018-05-01. Previous Versions

Apportionment of Damages

Marginal note:Degree of responsibility
  •  (1) Subject to this section and sections 337.4 to 337.6, every defendant or third party who has been found responsible for a financial loss is liable to the plaintiff only for the portion of the damages that corresponds to their degree of responsibility for the loss.

  • Marginal note:Uncollectable amounts

    (2) If any part of the damages awarded against a responsible defendant or third party is uncollectable, the court may, on the application of the plaintiff, reallocate that amount to the other responsible defendants or third parties, if the application is made within one year after the date that the judgment was made enforceable.

  • Marginal note:Reallocation

    (3) The amount that may be reallocated to each of the other responsible defendants or third parties under subsection (2) is calculated by multiplying the uncollectable amount by the percentage that corresponds to the degree of responsibility of that defendant or third party for the total financial loss.

  • Marginal note:Maximum amount

    (4) The maximum amount determined under subsection (3), in respect of any responsible defendant or third party, may not be more than fifty per cent of the amount originally awarded against that responsible defendant or third party.

  • 2001, c. 14, s. 218.
Marginal note:Exception — fraud
  •  (1) The plaintiff may recover the whole amount of the damages awarded by the court from any defendant or third party who has been held responsible for a financial loss if it was established that the defendant or third party acted fraudulently or dishonestly.

  • Marginal note:Contribution

    (2) The defendant or third party referred to in subsection (1) is entitled to claim contribution from any other defendant or third party who is held responsible for the loss.

  • 2001, c. 14, s. 218.

Joint and Several, or Solidary, Liability

Marginal note:Individual or personal body corporate
  •  (1) Defendants and third parties referred to in subsection 337.2(1) are jointly and severally, or solidarily, liable for the damages awarded to a plaintiff who is an individual or a personal body corporate and who

    • (a) had a financial interest in a cooperative on the day that an error, omission or misstatement in financial information concerning the cooperative occurred, or acquired a financial interest in the period between the day that the error, omission or misstatement occurred and the day, as determined by the court, that it was generally disclosed; and

    • (b) has established that the value of the plaintiff’s total financial interest in the cooperative was not more than the prescribed amount at the close of business on the day that the error, omission or misstatement occurred or at the close of business on any day that the plaintiff acquired a financial interest in the period referred to in paragraph (a).

  • Marginal note:Exception

    (1.1) Subsection (1) does not apply when the plaintiff brings the action as a member of a partnership or other association or as a trustee in bankruptcy, liquidator, receiver or sequestrator of a body corporate.

  • Marginal note:Interpretation

    (2) For the purposes of this section,

    • (a) a personal body corporate is a body corporate that is not actively engaged in any financial, commercial or industrial business and that is controlled by an individual, or by a group of individuals who are connected by marriage, common-law partnership or any legal parent-child relationship or are connected indirectly by a combination of those relationships, whether or not the individuals through whom they are connected are members of the group; and

    • (b) a common-law partnership is a relationship between two persons who are cohabiting with each other in a conjugal relationship and have done so for a period of at least one year.

  • 2001, c. 14, s. 218;
  • 2005, c. 33, s. 6;
  • 2011, c. 21, s. 114(E).
Marginal note:Equitable grounds
  •  (1) If the value of the plaintiff’s total financial interest referred to in subsection 337.5(1) is greater than the prescribed amount, a court may nevertheless determine that the defendants and third parties are jointly and severally, or solidarily, liable if the court considers that it is just and reasonable to do so.

  • Marginal note:Factors

    (2) The Governor in Council may establish factors that the court shall take into account in deciding whether to hold the defendants and third parties jointly and severally, or solidarily, liable.

  • Marginal note:Statutory Instruments Act

    (3) The Statutory Instruments Act does not apply to the factors referred to in subsection (2), but the factors shall be published in Part I of the Canada Gazette.

  • 2001, c. 14, s. 218.
Marginal note:Value of security
  •  (1) When, in order to establish the value of the total financial interest referred to in subsection 337.5(1), it is necessary to determine the value of a security that is traded on an organized market, the value of the security is, on the day specified in subsection (3),

    • (a) the closing price of that class of security;

    • (b) if no closing price is given, the average of the highest and lowest prices of that class of security; or

    • (c) if the security was not traded, the average of the bid and ask prices of that class of security.

  • Marginal note:Court may adjust value

    (2) The court may adjust the value of a security that has been determined under subsection (1) when the court considers it reasonable to do so.

  • Marginal note:Valuation day

    (3) The value of the security is to be determined as of the day that the error, omission or misstatement occurred. If the security was acquired in the period between that day and the day, as determined by the court, that the error, omission or misstatement was generally disclosed, the value is to be determined as of the day that it was acquired.

  • Marginal note:Definition of organized market

    (4) In this section, organized market means a recognized exchange for a class of securities or a market that regularly publishes the price of that class of securities in a publication that is generally available to the public.

  • 2001, c. 14, s. 218;
  • 2018, c. 8, s. 85(F).
Marginal note:Court determines value
  •  (1) The court shall determine the value of all or any part of a financial interest that is subject to resale restrictions or for which there is no organized market.

  • Marginal note:Factors

    (2) The Governor in Council may establish factors that the court may take into account in determining value under subsection (1).

  • Marginal note:Statutory Instruments Act

    (3) The Statutory Instruments Act does not apply to the factors referred to in subsection (2), but the factors shall be published in Part I of the Canada Gazette.

  • 2001, c. 14, s. 218.
Marginal note:Application to determine value

 The plaintiff may, by application made at any time before or during the course of the proceedings, request the court to determine the value of the plaintiff’s financial interest for the purpose of subsection 337.5(1).

  • 2001, c. 14, s. 218.

PART 19Remedies, Offences and Punishment

Marginal note:Definitions

 The definitions in this section apply in this Part.

action

action

action means an action taken under this Act. (action)

complainant

plaignant

complainant means

  • (a) a member or former member;

  • (b) a registered holder or beneficial owner, or a former registered holder or beneficial owner, of a security of a cooperative or any of its affiliates;

  • (c) a director or an officer, or a former director or officer, of a cooperative or any of its affiliates; or

  • (d) [Repealed, 2001, c. 14, s. 219]

  • (e) any other person who, in the opinion of the court, is a proper person to make an application under this Part. (plaignant)

  • 1998, c. 1, s. 338;
  • 2001, c. 14, s. 219.
 
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