Canada Cooperatives Act
Marginal note:Fractional shares
185 (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.
(2) The directors may attach conditions to scrip certificates issued by the cooperative, including conditions that
(a) the scrip certificates become void or, in Quebec, null 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.
- 1998, c. 1, s. 185
- 2011, c. 21, s. 90(E)
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