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

Marginal note:Issuance to members

• 118 (1) Membership shares may be issued only to members, each of whom must hold the minimum number of membership shares prescribed by the by-laws.

• Marginal note:Equal rights

  (2) Subject to Parts 20 and 21, the membership shares of a cooperative confer on their holders equal rights, including equal rights to

  • (a) receive dividends declared on membership shares; and

  • (b) subject to the articles, receive the remaining property of the cooperative on dissolution.

• Marginal note:Membership shares

  (3) The articles may not include any preference, right, condition, restriction, limitation or prohibition on membership shares, except as provided for by this Act.

• Marginal note:Transfer requires approval

  (4) A transfer of membership shares is valid only if it complies with section 46 and any restrictions set out in the by-laws.

• Marginal note:No right to vote

  (5) The right to vote attaches to membership in accordance with section 37 and not to a membership share.

• Marginal note:Redeemable

  (6) Subject to sections 146 and 149, membership shares may be redeemed by the cooperative.