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

Act current to 2016-11-21 and last amended on 2012-12-19. Previous Versions

Marginal note:Alternative resolution

 The Minister of Agriculture and Agri-Food may, in accordance with any regulations, provide assistance with respect to the alternative resolution of any dispute relating to the affairs of a cooperative.

PART 20Additional Provisions Respecting Non-profit Housing Cooperatives

Marginal note:Application

 This Part applies to cooperatives for which articles are issued to carry on business as non-profit housing cooperatives.

Marginal note:Requirement of articles

 The articles of a non-profit housing cooperative must provide that

  • (a) the name of the non-profit housing cooperative include the words “non-profit”, “not-for-profit”, “not for profit”, “sans but lucratif” or “à but non lucratif” and “housing cooperative”, “housing co-operative”, “housing co-op”, “coopérative d’habitation”, “coop d’habitation”, “co-op d’habitation”, “coopérative de logement”, “coop de logement” or “co-op de logement”; and

  • (b) the business of the cooperative is restricted to that of primarily providing housing to its members.

Marginal note:Special limitations

 The following restrictions apply to a non-profit housing cooperative:

  • (a) it may not issue investment shares;

  • (b) it may only issue membership shares on a par-value basis;

  • (c) it must in each year conduct at least fifty per cent of its business with its members;

  • (d) subject to subsection 357(2), its business must be carried on without the purpose of gain for its members; and

  • (e) on its dissolution, and after the payment of its liabilities, its remaining property is to be transferred to or distributed among one or more non-profit housing cooperatives, cooperatives incorporated in a province that have similar objectives and limitations, or charitable organizations.

Marginal note:By-laws
  •  (1) The by-laws of a non-profit housing cooperative must include

    • (a) any obligation of a member to provide capital to the cooperative and the manner in which the capital is to be contributed;

    • (b) any obligation of a member to contribute to charges of the cooperative and the manner in which the charges are to be determined and paid;

    • (c) the procedure for determining disputes between members and between members and the cooperative;

    • (d) subject to subsection (2), the manner in which the membership of a member may be terminated;

    • (e) the manner in which a member’s equity is to be determined on the member’s withdrawal from the cooperative, or on the termination of their membership and on a dissolution of the cooperative and the manner in which that equity is to be repaid;

    • (f) a provision for the establishment of adequate reserves and the maintenance of adequate insurance to protect the cooperative from loss; and

    • (g) a provision for the establishment of the rules governing charges by the cooperative for the occupation, leasing, subletting and subleasing of housing units of the cooperative.

  • Marginal note:Termination of membership

    (2) If the by-laws provide that membership is to be terminated by the directors, the by-laws must include a right of appeal to the members. Despite section 40, the by-laws may require that an appeal from the decision of the directors may only be launched within seven days after the member receives notice of the termination of membership.

  • Marginal note:Other provisions in by-laws

    (3) The by-laws of a non-profit housing cooperative may provide

    • (a) the rules by which the directors may establish a system of providing subsidies to members for housing charges, provided that the administration of the rules by the directors is fair as among the members; and

    • (b) any rules in addition to those specified in paragraph (1)(g) relating to the occupancy of a housing unit of the cooperative.

Marginal note:Member occupancy rights
  •  (1) A person who is a member is entitled to occupy the housing unit allocated to them by the non-profit housing cooperative while they are a member, although the directors may, subject to the by-laws, by notice, require the member to occupy an alternate housing unit.

  • Marginal note:Appeal

    (2) A member to whom a notice has been given by the cooperative to occupy an alternate housing unit may appeal that decision in the same manner as that provided for appeals of decisions by the directors to terminate the membership of a member.

  • Marginal note:Unsuccessful appeal

    (3) If an appeal by the member is not successful and the member does not relocate to the alternate housing unit within the time provided by the directors, their membership is deemed to have been terminated and despite section 40 and subsection 356(4), the member has no further appeal.

  • Marginal note:Occupancy during appeal

    (4) Despite section 40, if, in accordance with the by-laws, the directors terminate a member’s membership and the member appeals the termination, the member has the right to occupy the housing unit allocated to them until the termination has been confirmed by the members.

  • Marginal note:Confirmation on appeal

    (5) A decision of the directors to terminate the membership of a member is confirmed if the members, at a duly called meeting of the members, do not reverse the directors’ decision.

  • Marginal note:Deemed confirmation

    (6) If a meeting of the members is duly called to consider the appeal of a terminated member and a quorum of members is not available for the meeting, the decision of the directors is deemed to be confirmed.

  • Marginal note:Regaining possession of unit

    (7) If a member’s membership has been terminated and the member no longer has the right to occupy a housing unit of the cooperative, the cooperative regains possession of the housing unit by consent or by appropriate legal proceedings.

  • Marginal note:Compensation for occupation past termination date

    (8) The cooperative is entitled to compensation for a housing unit that is occupied by a terminated member until it is vacated.

  • Marginal note:Cooperative not to take other property

    (9) The cooperative may not take the property of a member to satisfy amounts due to the cooperative except by consent or by legal proceedings.

  • Marginal note:Inclusion in by-laws

    (10) For the purpose of section 16, the provisions of this section must be included in the by-laws of a non-profit housing cooperative.

Marginal note:Non-profit requirements
  •  (1) Subject to subsection (2), but despite any other provision of this Act, a non-profit housing cooperative may not distribute or pay any of its assets to a member.

  • Marginal note:Permitted payments

    (2) The cooperative may pay a member

    • (a) dividends on membership shares paid at a rate that is not more than eight per cent per year and interest on member loans at a rate that is not more than ten per cent per year;

    • (b) if the member withdraws from the cooperative or their membership in the cooperative is terminated, or on the dissolution of the cooperative, a sum equal to the member’s investment in membership shares or member loans; and

    • (c) a reasonable amount for property or services provided by the member to the cooperative.

  • Marginal note:No other payments permitted

    (3) No person may pay or accept compensation for the withdrawal from membership of a member of a non-profit housing cooperative or for any person giving up possession of a housing unit of the cooperative, except as is provided in subsection (2).

  • Marginal note:Limit on compensation

    (4) No person may give or accept, in connection with the allocation or use of a housing unit of the cooperative, compensation that exceeds the housing charges for the housing unit determined in accordance with the by-laws.

  • Marginal note:Limit on compensation

    (5) No person may give or accept, in connection with the allocation or use of a part of a housing unit of the cooperative, compensation that exceeds the amount that, having regard to the portion of the housing unit, would be a reasonable share of the housing charges for the housing unit determined in accordance with the by-laws.

  • Marginal note:If contravention of subsection (3), (4) or (5)

    (6) A person who accepts compensation in contravention of subsection (3), (4) or (5) must pay the amount of the compensation to the cooperative.

Marginal note:Resolution if proposed fundamental change

 A non-profit housing cooperative may not be a party to a fundamental change to which Part 16 applies unless the change is authorized by a vote of not less than ninety per cent of the members.

 
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