Bill 187, Co-operative Corporations Amendment Act (Audit Exemptions and Limits to Non-member Business), 2017

EXPLANATORY NOTE

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1 Section 123 of the Co-operative Corporations Act is repealed and the following substituted: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2 Subsection 144 (1) of the Act is repealed and the following substituted: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.

Commencement

3 This Act comes into force on the day it receives Royal Assent.

Short title

4 The short title of this Act is the Co-operative Corporations Amendment Act (Audit Exemptions and Limits to Non-member Business), 2017.