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

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

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.

PART 21Additional Provisions Respecting Worker Cooperatives

Definition of worker cooperative

  •  (1) For the purposes of this Part, worker cooperative means a cooperative whose prime objectives are to provide employment to its members and to operate an enterprise in which control rests with the members.

  • Marginal note:Requirements of articles

    (2) The articles of a worker cooperative must provide that

    • (a) no person may be admitted to membership unless the person is an individual and an employee of the cooperative; and

    • (b) the maximum membership investment payable by a person to be a member may not be more than fifty per cent of their expected annual salary during the first year of their membership, unless any amount in excess of that amount is also paid equally by all persons who are members.

  • Marginal note:Non-member employees

    (3) Despite subsection (2), a worker cooperative may provide employment to non-members if, not later than five years after the incorporation of the cooperative or the acquisition of a business by the cooperative, not less than seventy-five per cent of its permanent employees or those of any entity controlled by it are members.

  • Marginal note:Permanent employees

    (4) For the purpose of subsection (3), the following persons are not permanent employees:

    • (a) a person who is employed on a probationary period of less than three years; or

    • (b) a person who is under contract for a period of less than two years.

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

    • (a) any obligation of a member to provide capital to the cooperative, which capital, if required, must be applied fairly to all members;

    • (b) subject to subsections (2) and (3), the manner in which the membership of a member may be terminated;

    • (c) the procedure for allocating, crediting or distributing any surplus earnings of the cooperative, including that not less than fifty per cent of those earnings must be paid on the basis of the remuneration earned by the members from the cooperative or the labour contributed by the members to the cooperative;

    • (d) the period of probation of an applicant for membership, which may not be longer than three years;

    • (e) how work is to be allocated;

    • (f) a provision for the laying off or suspending of members when there is a lack of work; and

    • (g) a provision for the recall of members to work.

  • 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:Laid-off member

    (3) A temporary lay-off of a member does not result in termination of their membership. After a member has been laid off and two years have elapsed after the date of the lay-off without the member having resumed employment with the cooperative, the directors or the members may, in accordance with the by-laws, terminate the membership of the member.

  • Marginal note:Confirmation on appeal

    (4) 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

    (5) 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 directors must call a second meeting to be held, despite section 52, not later than seven days after the first meeting. If, at the second meeting, there is no quorum of members, the decision of the directors is deemed to be confirmed.

 
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