2000 Legislative Session: 4th 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 9th day of May, 2000
Ian D. Izard, Law Clerk


HONOURABLE JENNY KWAN
MINISTER OF COMMUNITY DEVELOPMENT,
COOPERATIVES AND VOLUNTEERS

BILL 9 -- 2000

COOPERATIVE ASSOCIATION AMENDMENT ACT, 2000

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 (1) of the Cooperative Association Act, S.B.C. 1999, c. 28, is amended by adding the following definition:

"subscriber" means a person or eligible organization that makes and subscribes the memorandum that is filed with the registrar.

2 Section 6 (c) is amended by striking out "sections 297, 298 and 313." and substituting "sections 297, 298, 312 (2) and 313."

3 Section 12 is amended

(a) by repealing paragraph (b) and substituting the following:

(b) show opposite the name of every subscriber the number of each class of investment shares, if any, taken by the subscriber and, for each class taken, whether the shares are without par value or the par value of those shares, , and

(b) by repealing paragraph (e) (ii) and substituting the following:

(ii) section 196 (1) of the Cooperative Association Act applies to the association and, if applicable, identify that statement as an unalterable provision, .

4 Section 13 (2) is repealed and the following substituted:

(2) The rules adopted by an association must provide for each of the prescribed matters.

5 Section 17 is amended by striking out "the subscribers to the memorandum, and" and substituting "the subscribers and".

6 Section 29 is amended by striking out "are the subscribers to the association's memorandum and" and substituting "are the subscribers and".

7 Section 30 is amended by striking out "that the person subscribe for a minimum number of membership shares." and substituting "that the person or eligible organization subscribe for a minimum number of membership shares."

8 Section 31 (3) is amended by striking out "and who are at least 16 years of age" and substituting "and who is at least 16 years of age".

9 Section 35 (3) (a) is repealed and the following substituted:

(a) the member has not paid rent, occupancy charges or other money due by the member to the housing cooperative in respect of the residential premises and has not rectified the nonpayment within a reasonable time after receiving written notice to do so from the housing cooperative; .

10 Section 37 is amended

(a) by adding the following subsection:

(2.1) If the members of a housing cooperative confirm the termination of a person's membership under subsection (2) (b), the housing cooperative must

(a) promptly serve the person with

(i) a notice that the resolution or special resolution confirming the termination was passed by the members, and

(ii) a notice in the prescribed form of the person's right to appeal the termination under subsection (3), and

(b) comply with other prescribed conditions. ,

(b) by repealing subsection (3) and substituting the following:

(3) A person who has been served with a notice under subsection (2.1) (a) (i) may appeal the termination to the court before the expiry of the 30 day period beginning on the day after the person is served with the notice on any of the following grounds:

(a) the housing cooperative failed to observe the principles of natural justice in terminating the membership;

(b) the decision of the housing cooperative is not reasonably supported by the facts;

(c) the decision of the housing cooperative is not authorized by section 35.

(3.1) Despite section 171, a person who has commenced an appeal in accordance with subsection (4) of this section continues to be a member of the association for the purposes of an application under section 172.1, and may include with the appeal an application under section 172.1 for an order of possession. ,

(c) in subsection (4) by striking out "in accordance with Rule 49 of the Rules of Court by notice of appeal" and substituting "in accordance with Rule 49 of the Rules of Court by notice of appeal in Form 59",

(d) by adding the following subsections:

(4.1) If a person commences an appeal under subsection (3) from a decision of a housing cooperative to terminate that person's membership, the housing cooperative may file an application under section 172 (1) with its appearance under Rule 49 (6) of the Rules of Court.

(4.2) If an appeal is commenced under this section,

(a) any application by the housing cooperative for an order under section 172 (1) must be filed with the appearance, and

(b) any application by the member under section 172.1 must be filed with the notice of appeal

so that the court may determine at the same time all the issues between the parties relating to the termination. , and

(e) by repealing subsection (5) and substituting the following:

(5) An appeal to the court under subsection (3) may be a new hearing and the court may hear all the evidence the court considers relevant including, but not limited to, the evidence of the housing cooperative and the person, and the court

(a) must either

(i) despite section 39, restore the membership in the housing cooperative of the person whose membership was terminated by the resolution or special resolution, with the restoration to be effective on and after a date specified by the court, and if an application has been made under section 172.1, the court must make an order of possession in favour of the member, or

(ii) confirm the resolution or special resolution by which the members of the housing cooperative confirmed the termination of the person's membership, and if an application has been made under section 172, the court must make an order of possession in favour of the housing cooperative, and

(b) may make any other order that the court considers appropriate.

11 Section 38 (3) is amended by striking out "The entitlement described in subsection (2), of a person whose membership in a housing cooperative is terminated or who withdraws from membership in a housing cooperative," and substituting "The entitlement, described in subsections (1) and (2), of a person who withdraws from membership in a housing cooperative or whose membership in a housing cooperative is terminated,".

12 Section 48 (1) (b) is amended by striking out "the association's memorandum or rules," and substituting "the association's memorandum,".

13 Section 49 is repealed and the following substituted:

Investment shares -- provisions in memorandum and rules

49 An association may provide in its memorandum for the association to issue investment shares, and if the memorandum so provides, the memorandum of the association must be consistent with the requirements for investment shares in section 48, and

(a) the memorandum must set out for every class of investment shares

(i) whether the number of investment shares that may be issued is unlimited and, if not, the maximum number of investment shares that may be issued, and

(ii) the par value of the shares or a statement that the shares are without par value, and

(b) the rules must set out

(i) the designation of each class of investment shares and the special rights and restrictions attached to each class, and

(ii) if applicable, that investment shares may be issued to non-members.

14 Section 50 is repealed.

15 Section 59 is amended

(a) by repealing subsection (2) and substituting the following:

(2) The rules of an association may provide that investment shares, or if there are classes of investment shares, investment shares of a specified class, confer on their holders the right

(a) to vote on an election of directors because of the occurrence of a contingency that has occurred and is continuing, or

(b) to elect a set number or a percentage of the directors. ,

(b) in subsection (3) by striking out "specified class or series, as the case may be." and substituting "specified class, as the case may be.", and

(c) in subsection (4) by striking out "the memorandum or rules must not provide" and substituting "the rules must not provide".

16 Section 73 (1) is amended by striking out "by a majority of the subscribers to the memorandum." and substituting "by a majority of the subscribers."

17 Section 91 (2) is amended by striking out "approved by the directors under section 90 (2)," and substituting "approved by the directors under section 90 (1),".

18 Section 91 (3) is amended

(a) in paragraph (a) by striking out "which approval or affirmation was given," and substituting "which approval was given,", and

(b) by adding "or" at the end of paragraph (a) and by repealing paragraphs (b) and (c) and substituting the following:

(b) if no such annual general meeting is held,

(i) as an attachment to the association's financial statements issued for that financial year, or

(ii) in a record deposited in the registered office of the association.

19 Section 91 (4) is amended

(a) by repealing paragraph (a) (i) and substituting the following:

(i) if disclosure is waived by the court under subsection (5), or , and

(b) in paragraph (b) by striking out "under paragraph (a) (i) deferring disclosure." and substituting "under subsection (5) deferring disclosure."

20 Section 91 (5) is amended by striking out "an order under subsection (4) (a) (i) waiving or deferring disclosure" and substituting "an order waiving or deferring disclosure".

21 Section 94 (c) is amended by striking out "have not approved or affirmed a contract" and substituting "have not approved a contract".

22 Section 100 (2) is amended by striking out "the payment of expenses is not permitted by section 101," and substituting "the payment of expenses is prohibited by section 101,".

23 Section 103 is amended by striking out "or holding a position equivalent to that of a director" and substituting "or holding or having held a position equivalent to that of a director".

24 Section 110 is amended

(a) by repealing subsection (1) (c) (i) and substituting the following:

(i) for its member associations that are not operated on a not for profit basis, and , and

(b) in subsection (3) by striking out "retrospective affect" and substituting "retrospective effect".

25 Section 114 is amended

(a) in subsection (2) (b) by striking out "generally accepted accounting principles applied on a basis consistent with that of the preceding period." and substituting "generally accepted accounting principles.", and

(b) in subsection (3) by striking out "statement of source and application of funds" wherever it appears and substituting "statement of cash flows".

26 Section 126 (1) is repealed and the following substituted:

(1) Subject to subsection (1.1), the association must file with the registrar an annual report, current to the end of the most recently completed financial year of the association, within 2 months after an association's annual general meeting, in the prescribed form and containing the prescribed information.

(1.1) An annual report must be filed with the registrar once in each calendar year.

27 Section 127 is repealed.

28 Section 128 (2) (b) is repealed and the following substituted:

(b) a copy of

(i) every audited financial statement of the association and its subsidiiaries, whether or not consolidated with the financial statement of the association, including the auditor's report, and

(ii) if the appointment of an auditor has been waived under section 109 for any financial years, the unaudited annual financial statements of the association and its subsidiaries, whether or not consolidated with the financial statement of the association, for those years; .

29 Section 130 (5) is amended by striking out "the minutes of the directors," and substituting "the minutes of the meetings of the directors,".

30 Section 139 (1) is amended by striking out "by section 68 (2)." and substituting "by sections 68 (2), 71 (2), 191 (3) (a) and 197 (1) (a)."

31 Section 140 is amended by striking out "a director or officer of the association." and substituting "a director, officer or the solicitor of the association."

32 Part 8 is amended by repealing the heading of Division 4 and substituting the following:

Part 8.1 -- Meetings .

33 Section 150 (2) (c) is amended by striking out "more than 5 000 members" and substituting "5 000 or more members".

34 Section 153 (1) (b) (v), (2) and (4) is amended by striking out "statement of source and application of funds" and substituting "statement of cash flows".

35 Section 161 (1) (a) is repealed and the following substituted:

(a) a resolution to amend the association's rules to authorize the association to issue investment shares to non-members; .

36 Section 163 (1) is amended by striking out "in sections 147," and substituting "in section 147,".

37 Section 164 (1) (a) is amended by striking out "at or by or by" and substituting "at or by".

38 Section 172 (2) is repealed and the following substituted:

(2) On an application under subsection (1), if an appeal has not been commenced under section 37 and the application relates to a termination under section 35, the court must first determine, on evidence the court considers relevant, whether the person's membership was terminated in accordance with the principles of natural justice.

(3) If the court determines under subsection (2) that the person's membership was terminated in accordance with the principles of natural justice, the court must make an order of possession in favour of the housing cooperative.

39 The following section is added:

Court order of possession -- application by member

172.1 A member of a housing cooperative who has a right to possession or occupancy of residential premises that is dependent on his or her membership may apply to the court for an order of possession of the residential premises.

40 Section 180 (1) (d) is repealed and the following substituted:

(d) is registered under section 181.

41 Section 181 (a) is amended by striking out "extra provincial" and substituting "extraprovincial".

42 Section 187 (2) is amended by striking out "in its memorandum or rules" wherever it appears and substituting "in its memorandum".

43 Section 199 is amended

(a) in paragraph (a) by striking out "126 (1) or (2), 127 (1)" and substituting "126 (1), (1.1) or (2),", and

(b) by repealing paragraph (d) and substituting the following:

(d) contravenes section 180 (1) or (2) of this Act.

44 Section 210 is amended by striking out "Ministry of Finance and Corporate Relations." and substituting "Minister of Finance and Corporate Relations."

45 Section 214 (2) (a) is amended by striking out "any of those classes" and substituting "any one of those classes".

 
Consequential Amendment

Securities Act

46 Section 46 (h), (h.1) and (h.2) of the Securities Act, R.S.B.C. 1996, c. 418, as enacted by section 227 of the Cooperative Association Act, S.B.C. 1999, c. 28, is repealed and the following substituted:

(h) securities issued by an association to which the Cooperative Association Act applies, if prescribed conditions are met; .


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