The Bill amends the Co-operative Corporations Act to provide for exemptions from audit provisions for certain co-operatives. The Bill also amends the Act to provide for limits to non-member business for certain co-operatives.
Bill 187 2017
An Act to amend the Co-operative Corporations Act with respect to audit exemptions and limits to non-member business
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
1 Section 123 of the Co-operative Corporations Act is repealed and the following substituted:
Exemption from audit provisions
123 A co-operative is exempt, in respect of a financial year, from sections 124 and 125, subsections 126 (1) and (2), section 127, clause 128 (1) (b) and subsection 128 (3) if,
(a) the co-operative is not required to have filed an offering statement under subsection 34 (1);
(b) no government grant or subsidy that the co-operative receives during the financial year has a condition requiring the co-operative to be audited; and
(c) a special resolution not to appoint an auditor is confirmed at the most recent annual meeting before the beginning of the financial year.
2 Subsection 144 (1) of the Act is repealed and the following substituted:
Limit to non-member business
(1) Where the Minister is of the opinion that a co-operative has for a period of three years or longer conducted more of its business with non-members of that co-operative than is specified in its articles or by-laws, or 50 per cent or more of its business with non-members of that co-operative if no limit on business with non-members is specified in its articles or by-laws, the Minister may, after giving the co-operative an opportunity to be heard,
(a) issue a certificate of amendment changing the co-operative into a corporation subject to the provisions of the Business Corporations Act and, where necessary for the purpose, changing the co-operative into a corporation with share capital; or
(b) issue a certificate of amendment changing the co-operative into a corporation subject to the provisions of Part III of the Corporations Act and, where necessary for the purpose, changing the co-operative into a corporation without share capital.
3 This Act comes into force on the day it receives Royal Assent.
4 The short title of this Act is the Co-operative Corporations Amendment Act (Audit Exemptions and Limits to Non-member Business), 2017.