1998/99 Legislative Session: 3rd Session, 36th Parliament
THIRD READING

The following electronic version is for informational purposes only.
The printed version remains the official version.

Certified correct as passed Third Reading on the 14th day of July, 1999
Ian D. Izard, Law Clerk

HONOURABLE JAN PULLINGER
MINISTER OF HUMAN RESOURCES

BILL 98 – 1999

COOPERATIVE ASSOCIATION ACT

Contents

Section
Part 1 – Interpretation and Application
  1  Definitions and interpretation
  2  When status as reporting association ceases
  3  Corporate relationships
  4  Share ownership
  5  Application of Company Act to associations
  6  Application of Company Act to extraprovincial associations
  7  Rules for Company Act interpretation
  8  Cooperative basis
  9  Patronage returns

Part 2 – Incorporation
  Division 1 – Formation of Associations
  10  Formation of association
  11  Filing memorandum and rules
  12  Memorandum requirements
  13  Rules
  14  List of directors
  15  Registration documents
  16  Conclusiveness of certificate
  17  Incorporation from date of certificate
  18  Effect of memorandum and rules
  19  Power and capacity
  20  Restricted business and powers
  21  No constructive notice
  Division 2 – Name
  22  Name reservation
  23  Form of name
  24  Registrar's discretion as to name
  25  Use of "cooperative" and its derivatives in business name restricted
  26  Publication of name
  Division 3 – Registered Office
  27  Registered office
  28  Service of documents

Part 3 – Membership and Voting
  Division 1 – Membership
  29  Membership
  30  Membership share requirement
  31  Members under 19 years of age
  32  Government, first nations and corporations as members
  33  Withdrawal from membership
  34  Termination of membership in an association other than a housing cooperative
  35  Termination of membership in a housing cooperative
  36  Notices respecting the termination of members
  37  Appeal from termination of membership
  38  Requirement to redeem shares on membership withdrawal or termination
  39  Special resolution for readmission
  Division 2 – Voting by Members
  40  Right to vote
  41  Special voting rights for classes of membership
  42  Joint members
  43  Proxy voting
  44  Voting choices for a member
  45  Corporate membership – equitable voting
  Division 3 – Delegate System of Voting
  46  Rules may provide for a delegate system
  47  Executive committee

Part 4 – Finance
  Division 1 – Share Capital Structure
  48  Capital – membership and investment shares
  49  Investment shares – provisions in memorandum and rules
  50  Consistency between memorandum and rules
  51  Consideration for membership and investment shares
  52  Issue of membership and investment shares
  53  Payments to joint shareholders
  54  Member share dividends or interest
  55  Liability of members and investment shareholders
  56  Association's lien on membership or investment shares
  57  Membership or investment share certificates
  58  Particulars of issue on investment share certificates
  Division 2 – Voting by Investment Shareholders
  59  Investment shareholder voting rights and restrictions
  60  Separate resolution rights not affected
  61  One investment share, one vote
  62  Proxy voting by investment shareholders
  63  Members holding investment shares
  Division 3 – Joint Investment Shares
  64  Joint investment shares
  65  Joint tenancy or tenancy in common
  Division 4 – Share Capital Redemption and Reduction
  66  Redeeming shares, loans to members, paying dividends
  67  Reduction of share capital

Part 5 – Association Alterations
  Division 1 – Amendments to Memorandum and Rules
  68  Amendment of memorandum and rules
  69  Effective date of amendment
  70  No interference with class rights without consent
  Division 2 – Substantial Disposition of Association's Undertaking
  71  No pledge or disposition of association's undertaking without consent

Part 6 – Management
  Division 1 – Directors Generally
  72  Directors
  73  First directors
  74  Election or appointment of directors
  75  Remuneration of directors
  76  Directors' responsibility to manage association
  77  Meetings of director
  78  Association to file notice as to directors
  79  Persons disqualified as directors
  80  Director ceasing to hold office
  81  Effective date of director's resignation
  82  Removal of director
  83  Notice of cessation
  84  Duties of directors
  85  Validity of acts of directors
  Division 2 – Disclosure and Conflict of Interest Rules – Directors and Officers
  86  Disclosable interest
  87  Director and officer to disclose interest
  88  Means of making disclosure
  89  Obligation to account for profits
  90  Approval
  91  Disclosure to shareholders
  92  Powers of court
  93  Court may make declaration
  94  Validity
  95  Disclosure of conflict of office or property
  96  Limitation of obligations of directors and officers
  Division 3 – Indemnification of Directors and Payment of Expenses
  97  Definitions
  98  Indemnification and payment permitted
  99  Mandatory payment of expenses
  100  Authority to advance expenses
  101  Indemnification prohibited
  102  Court ordered indemnification
  103  Insurance
  Division 4 – Officers
  104  Security by officers
  105  Duties of officers
  106  Validity of acts of officers

Part 7 – Auditors
  Division 1 – Appointment of Auditor
  107  Application of the Company Act
  108  Auditors
  109  Exception
  110  Qualifications
  111  Persons not qualified as auditors
  112  Remuneration
  113  Removal of auditor
  Division 2 – Duties and Rights of Auditors
  114  Annual audit
  115  Negative audit report
  116  Audited statements of subsidiaries
  117  Auditor's attendance
  118  Procedure
  119  Amendment of financial statements and report
  120  Access to records
  121  Information as to foreign subsidiaries
  122  Auditor's attendance at meetings
  123  Qualified privilege

Part 8 – Records
  Division 1 – Registers
  124  Register of members and investment shareholders
  125  Register of directors
  Division 2 – Records Filed With the Registrar
  126  Annual report
  127  Financial statements of reporting associations
  Division 3 – General
  128  Records to be kept at registered office
  129  Records available to directors and former directors
  130  Examination of records
  131  Reasonable restrictions
  132  Copies
  133  Lists of members, investment shareholders and debentureholders
  134  Prohibition against improper use of list
  135  Association must give access to certain records
  136  Form of records
  137  Minutes
  138  Accounts at registered office
  139  Special resolutions to be filed
  140  Authentication
  141  Confidentiality
  142  Copies of memorandum and rules
  Division 4 – Meetings
  143  General meetings
  144  Provision for 2 or more general meetings for same matters
  145  Semi-annual or other periodic meetings
  146  Notice of meetings to be given
  147  Manner of giving notice
  148  Place of meeting is British Columbia, or as registrar approves
  149  Voting, in person at meeting or other form of communication
  150  Holding of special general meetings
  151  Member requisitioned special general meetings
  152  Directors' decision whether to call requisitioned meeting
  153  Information for annual general meeting

Part 9 – Court Proceedings and Investigations
  154  Interpretation
  155  Application of the Company Act
  Division 1 – Court Proceedings
  156  Court proceedings on member's or investment shareholder's application
  157  Court's power to restrain breach or require compliance
  Division 2 – Investigations
  158  Court may order investigation
  159  Association may require investigation

Part 10 – Dissent
  160  Definitions
  161  Right to dissent
  162  Loss of right to dissent
  163  Notice of resolution
  164  Notice of dissent
  165  Association's response to dissent
  166  Application to court
  167  Prohibition against payment
  168  Dissenter entitled to return of shares and rights
  169  Disposition of shares

Part 11 – Special Purpose Associations
  Division 1 – Housing Cooperatives
  170  Application
  171  Right to possession terminated
  172  Court order of possession
  173  Special provisions on dissolution or winding up of a housing cooperative
  Division 2 – Certain Producer Associations (Cooperative Marketing)
  174  Definitions
  175  Breach of contract
  176  Exception for fishing industry
  177  Termination of marketing contract after notice
  178  Requirement to respect cooperative marketing contract

Part 12 – Extraprovincial Associations
  179  Application of Part
  180  Registration under this Act of extraprovincial corporations organized on a cooperative basis
  181  Registration as an extraprovincial corporation

Part 13 – Continuation, Amalgamation
  Division 1 – Continuation of Cooperative Associations into or out of British Columbia
  182  Definitions
  183  Continuation into British Columbia
  184  Instrument of continuation
  185  Certificate of continuation into British Columbia
  186  Consequences of continuation into British Columbia
  187  Continuation from British Columbia
  188  Abandonment of continuation application
  189  Filing requirements and registrar's certificate
  190  When Act ceases to apply to association continued out of British Columbia
  Division 2 – Amalgamation of Associations
  191  Amalgamation
  192  Consequences of amalgamation
  193  Exceptions to amalgamation

Part 14 – Dissolution, Winding Up, Restoration
  194  Application of the Company Act
  195  Cancellation of incorporation
  196  Dissolution and winding up
  197  Application for voluntary dissolution

Part 15 – Offences and Penalties
  198  Offence Act
  199  Offences
  200  Misleading statements an offence
  201  Penalties
  202  Remedies preserved
  203  Limitation period

Part 16 – Administration
  Division 1 – Registrar
  204  Registrar may refuse to accept filing
  205  Document imaging
  206  Inspection of records at registrar's office
  Division 2 – Appeal to Commercial Appeals Commission
  207  Appeal from registrar's decisions
  Division 3 – General
  208  Arbitration of disputes
  209  Employment as inducement to invest
  210  Fees

Part 17 – Regulations
  211  Power to make regulations

Part 18 – Transitional Provisions
  212  Definitions
  213  Membership shares of pre-existing associations with one class of share
  214  Membership shares of pre-existing associations with 2 or more classes of shares
  215  Application of section 216 to certain pre-existing associations
  216  Notice of rights and restrictions
  217  Former Act associations
  218  Powers of associations incorporated before June 30, 1988
  219  Repeal
  220 to 228  Consequential Amendments
  229  Commencement

[ NEXT PART . . . ]

Copyright © 1999: Queen's Printer, Victoria, British Columbia, Canada