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Canada Cooperatives Act

Version of section 185 from 2003-01-01 to 2011-11-28:


Marginal note:Fractional shares

  •  (1) A cooperative may issue a certificate for a fractional investment share or may instead issue a scrip certificate in bearer form that entitles the holder to receive a certificate for a full investment share in exchange for sufficient scrip certificates equalling a full investment share.

  • Marginal note:Conditions

    (2) The directors may attach conditions to scrip certificates issued by the cooperative, including conditions that

    • (a) the scrip certificates become null or void if not exchanged for an investment share representing a full investment share before a specified date; and

    • (b) any investment shares for which the scrip certificates are exchangeable may, despite any pre-emptive right, be issued by the cooperative to any person and the proceeds distributed rateably to the holders of the scrip certificates.

  • Marginal note:Voting rights

    (3) A holder of a fractional investment share is not entitled to exercise voting rights or to receive a dividend in respect of the investment share unless

    • (a) the fractional share results from a consolidation of investment shares; or

    • (b) the articles of the cooperative provide otherwise.

  • Marginal note:Exercise of voting rights

    (4) A holder of a scrip certificate is not entitled to exercise voting rights or to receive a dividend in respect of the scrip certificate.

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