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


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


BILL 98 -- 1999

COOPERATIVE ASSOCIATION ACT

... continued ...

 
Part 11 -- Special Purpose Associations

 
Division 1 -- Housing Cooperatives

Application

170 (1) This Part applies only to housing cooperatives.

(2) Unless a provision in this Part conflicts with or is inconsistent with the other provisions of this Act, those other provisions also apply.

Right to possession terminated

171 Any right of a member to possession or occupancy of residential premises that is dependent on his or her membership in a housing cooperative is terminated on the termination or other cessation of the membership.

Court order of possession

172 (1) After termination under section 171 of a person's right to possession or occupancy of residential premises, the housing cooperative in which the person was a member may apply to the court for an order of possession of the residential premises.

(2) 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.

Special provisions on dissolution or winding up of a housing cooperative

173 (1) This section applies only to a housing cooperative that

(a) provides in its memorandum that this section applies to the housing cooperative,

(b) on June 30, 1988, had in its memorandum or rules, or both, a provision to the effect that, on a dissolution or winding up, the property of the housing cooperative, after satisfaction of its liabilities, costs, charges and expenses, must not be disposed of or distributed among the members, or

(c) on June 30, 1988, had in its memorandum or rules, or both, a provision to the effect that, on a dissolution or winding up, the property of the housing cooperative, after satisfaction of its liabilities, costs, charges and expenses, must not be disposed of or distributed among the members and, by that provision or another provision in its memorandum or rules, or both, established another manner for the disposition or distribution.

(2) If a housing cooperative to which this section applies is dissolved or wound up, its property, after satisfaction of its liabilities, costs, charges and expenses properly incurred in the dissolution or winding up, must be dealt with as follows:

(a) if it is a housing cooperative described in subsection (1) (a) or (b), the property must be transferred to or distributed among one or more other organizations that are housing cooperatives to which this section applies;

(b) if it is a housing cooperative described in subsection (1) (c), the property must be disposed of in accordance with the applicable provision in its memorandum or rules, or both, referred to in that paragraph.

(3) Except as provided in this section, no part of the property of a housing cooperative to which this section applies is to be paid or distributed to the members during its existence or on its dissolution or winding up.

(4) A housing cooperative to which this section applies must not alter its memorandum or rules, or both, to amend or repeal a provision referred to in subsection (1).

(5) A provision of the memorandum or rules of a housing cooperative to which this section applies that is inconsistent with the applicable provision referred to in subsection (1) is without effect to the extent of the inconsistency.

(6) Nothing in this section prohibits a housing cooperative to which this section applies

(a) from doing anything permitted under section 9 or 66,

(b) subject to its rules, from repaying to a member an amount not exceeding the value of contributions or improvements by the member, in addition to amounts paid by the member for shares, to the property of the housing cooperative, or

(c) from paying money the housing cooperative owes to a member.

(7) A housing cooperative to which this section applies must not issue

(a) investment shares, or

(b) membership shares other than membership shares with a par value.

(8) As an exception to subsection (1), this section does not apply to a housing cooperative that was dissolved, or for which winding up was commenced as referred to in section 293 or 297 of the Company Act, R.S.B.C. 1979, c. 59, before June 5, 1995.

(9) If, between June 30, 1988 and June 8, 1995, a housing cooperative to which this section applies altered its memorandum or rules, or both, to amend or repeal a provision referred to in subsection (1), the amendment or repeal is void, and the memorandum or rules, or both, as applicable, are conclusively deemed to be as they were before the amendment or repeal.

(10) The registrar must note in the filed memorandum or rules, or both, of a housing cooperative any changes that are effected by subsection (9).

 
Division 2 -- Certain Producer Associations (Cooperative Marketing)

Definitions

174 In this Division:

"cooperative marketing contract" means a contract entered into by a person with an association to deliver to or sell through the association any thing caught, grown, made or produced by the person, or on the person's behalf, or in which the person has an interest, that person being one of a number of persons with whom the association has entered into contracts of a similar nature;

"producer" means a person who has entered into a cooperative marketing contract with an association.

Breach of contract

175 (1) A cooperative marketing contract may set, as liquidated damages, that must not be regarded as penalties, specific sums to be paid by the producer to the association on the breach of any provision of the cooperative marketing contract in respect of the sale or delivery of any product, and may provide that the producer who breaks his or her contract must pay all costs, expenses and fees if any action in respect of the breach is brought by the association.

(2) In the event of a breach or threatened breach of a provision of a cooperative marketing contract by a producer in respect of the sale or delivery of any product, the association is entitled to

(a) an injunction to restrain the producer and the producer's agents and servants from selling or delivering the product otherwise than in accordance with the contract, and

(b) an order for specific performance of the contract by the producer.

(3) Pending the adjudication of any action brought by the association under this section, and on application, by one party only, to the court showing the breach or threatened breach, and on giving an undertaking or security approved by the court, the association is entitled to an interim injunction.

Exception for fishing industry

176 A person who uses or is employed on a fishing or fish packing vessel owned, chartered, hired or otherwise controlled by a person engaged in the fishing industry, if the vessel is used to catch, produce, collect or transport fish or other marine products,

(a) is not bound by a cooperative marketing contract with respect to the sale, delivery or other disposal of any fish or marine products caught, produced, collected or transported from, by or in the vessel, and

(b) section 175 does not apply to the sale, delivery or other disposal of the fish or marine products unless the person who owns or controls the fishing vessel is, or if the fishing vessel is separately owned and controlled then, unless both persons are also bound by a cooperative marketing contract with the same cooperative association.

Termination of marketing contract after notice

177 (1) Despite any other provisions of this Act or any rule of law to the contrary, a producer may, before the end of any calendar year, give notice of termination of any cooperative marketing contract, to deliver, sell or otherwise deal with fish or other marine products, to which the producer is a party.

(2) The notice referred to in subsection (1) must be in writing, and must be served on the association by forwarding the notice by prepaid mail to the association, addressed to its office or place of business.

(3) If a notice is served in accordance with subsection (2), the marketing contract referred to in the notice terminates on December 31 following the date of service of the notice.

Requirement to respect cooperative marketing contract

178 A person who has knowledge or notice of the existence of a cooperative marketing contract between a producer and an association must not

(a) solicit, persuade or aid or abet the producer to sell or deliver any product otherwise than in accordance with the terms of the cooperative marketing contract,

(b) receive for sale or other disposal any product of the producer delivered by the producer otherwise than in accordance with the terms of the cooperative marketing contract, or

(c) acquire any product of the producer other than in accordance with the terms of the cooperative marketing contract.


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