118.1. In the case of a cooperative association referred to in section 118, the by-laws, for the setting up of the board of directors, may(a) order that the members be divided into groups, that the territory where the association operates be divided into sectors, or both at the same time; and
(b) allocate a certain number of directors to each group and, where that is the case, each sector, and determine how each of such directors is nominated and elected.
For the purposes of this section, a group may consist of a cooperative or federation of cooperatives established under an act of Québec.