C-67.2, r. 1 - Regulation under the Cooperatives Act

Section 17 Disposition versions

2012-09-01

17. For the purposes of sections 128.1 and 211.5 of the Act, “business” means the following, depending on the classes of cooperatives listed below:

Classes of cooperatives                       Meaning of “business”
_____________________________________   ______________________________________

(1) Producers cooperatives, including
agricultural cooperatives governed by
Division I of Chapter I of Title II
of the Act:

(a) whose object is to provide goods     sales and revenues from services
and services

(b) whose object is processing or        purchase and consignment of marketed
marketing                                products, except those of the same
                                         nature as those marketed for the
                                         members, originating from persons who
                                         are not eligible to become members

(2) Consumer cooperatives, except        sales and revenues from services
those referred to in paragraphs
2.1 and 2.2

(2.1) Funeral service cooperatives       the number of funerals

(2.2) Housing cooperatives               the number of dwellings in use

(3) Work cooperatives                    remuneration paid

(4) Shareholding workers cooperatives    remuneration paid by the company

                                         In the case of a shareholding workers
                                         cooperative made up exclusively of
                                         workers of a place of business of the
                                         company, the remuneration paid by the
                                         company in that place of business

(5) Solidarity cooperatives,
according to the categories of
members:

(a) user members, where the              sales and revenues from services
cooperative provides goods and
services for their personal use

(b) user members, where the              sales and revenues from services
cooperative provides goods and
services necessary in the practice
of their profession or the
operation of their enterprise

(c) user members, where the              purchase and consignment of marketed
cooperative processes or markets         products
the products or services of
its members

(d) worker members                       remuneration paid

The provisions of this section apply, with the necessary modifications, to federations and confederations.

Where the object of a cooperative, federation or confederation is to provide goods and services and be engaged in processing or marketing, the proportion of its business that must be carried on with its members is to be calculated separately for each sector of business.

Where a cooperative, federation or confederation has work done for a fixed price, the word “business” includes the price paid for the work, but does not include the supply and sale of goods and services required to perform the contract and the resulting goods and services.

The word “business” does not include purchases and sales of goods and services contracted between a cooperative and a federation or confederation or La Coop fédérée or other cooperative.

For the purposes of section 128.1 of the Act, “subsidiary” means

“a legal person in which the cooperative holds more than 50% of the issued capital stock having full voting rights or has the right to elect a majority of the members of its board of directors.”

O.C. 953-2005, s. 17.