A-24 - Cooperative Associations Act

Section 40 Disposition versions

1977-12-31

40. In the case of the death, resignation, expulsion or interdiction of a member, the association shall repay to the member, his heirs or representatives the sums paid on his common shares.

Nevertheless, no association shall

(a)  repay in any one fiscal year more than ten per cent of its common shares;

(b)  appropriate for such repayment in any one fiscal year an amount equal to more than one-half of its general reserve;

(c)  make such repayment when it is insolvent or when such repayment would make it insolvent;

(d)  make such repayment when the board considers that it would be detrimental to the financial stability of the association.

R. S. 1964, c. 292, s. 34; 1970, c. 58, s. 12.