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

Marginal note:Patronage returns

• 155 (1) A cooperative may allocate among and credit or pay to the members, as a patronage return, all or a part of the surplus arising from the operations of the cooperative in a financial year in proportion to the business done by the members with or through the cooperative in that financial year, calculated in the manner described in subsection (2) at a rate set by the directors.

• Marginal note:Calculation of patronage

  (2) For the purpose of subsection (1), the directors may calculate the amount of the business done by each member with or through a cooperative in a financial year by taking into account

  • (a) the quantity, quality, kind and value of things bought, sold, handled, marketed or dealt in by the cooperative;

  • (b) the services rendered

    • (i) by the cooperative on behalf of or to the member, and

    • (ii) by the member on behalf of or to the cooperative; and

  • (c) differences that are, in the opinion of the directors, appropriate for different classes, grades or qualities of things and services.

• Marginal note:Non-member patronage allocation

  (3) The by-laws may provide that a cooperative may allocate among and credit or pay to persons who use the services of the cooperative but who are not members a share of any surplus at a rate that is equal to or less than the rate at which the surplus is distributed to members.

• Marginal note:Calculation of non-member patronage

  (4) If a cooperative allocates among and credits or pays to persons referred to in subsection (3) a share of any surplus, the directors must calculate the business done by the non-member patrons in the manner described in subsection (2).