334. The capital stock of a federation shall consist of qualifying shares the price of which shall be determined by by-law of the federation. It may also include cooperative shares and preferred shares. The by-law of the federation shall determine the price, rights, conditions and privileges attached to cooperative shares and preferred shares. The by-law respecting cooperative shares must be approved by the confederation with which the federation is affiliated, where that is the case.
The shares shall be in registered form and may be issued only to members and, where permitted by the by-laws of the federation, qualifying shares and preferred shares may also be issued to auxiliary members.
Notwithstanding the first and second paragraphs, a federation affiliated with a confederation may, with the authorization of the Inspector General and subject to such conditions and restrictions as he may determine, issue preferred shares of one or more classes to a security fund corporation.
Preferred shares issued under the third paragraph may not be redeemed without the authorization of the Inspector General.
1988, c. 64, s. 334; 1994, c. 38, s. 7.