R-8.1.1 - Cooperative Investment Plan Act

Section 6 Disposition versions

2013-06-05

6. In this Act, “qualifying security” means a preferred share that is issued by a qualified cooperative or qualified federation of cooperatives and that meets the following conditions:

(1)  its issue is authorized by the Minister under a qualification certificate issued after 30 March 2004;

(2)  it is acquired, as first purchaser, by a qualified investor in respect of the qualified cooperative or qualified federation of cooperatives;

(3)  if interest is to be paid on the security, it bears interest at a maximum rate determined by resolution of the board of directors of the qualified cooperative or qualified federation of cooperatives, which interest must be non-cumulative and payable annually when decided by the board of directors if the financial situation of the qualified cooperative or qualified federation of cooperatives so allows and, if it is issued after 20 March 2012, the terms and conditions of its issue, determined by resolution of the board of directors, provide that the interest is payable only in cash;

(4)  subject to section 7, it is redeemable or repayable only after the expiry of a period of at least five years beginning on the date of its issue;

(5)  if it is issued as payment of interest on a preferred share held by a qualified investor, the board of directors of the qualified cooperative or qualified federation of cooperatives decided, before 21 March 2012, to so pay the interest; and

(6)  in the case of a preferred share issued by a shareholding workers cooperative after 20 March 2012 pursuant to an agreement entered into after that day, it is acquired for a consideration that consists solely of money.

2006, c. 37, s. 6; 2013, c. 10, s. 215.

2006-12-06

6. In this Act, “qualifying security” means a preferred share that is issued by a qualified cooperative or qualified federation of cooperatives and that meets the following conditions:

(1)  its issue is authorized by the Minister under a qualification certificate issued after 30 March 2004;

(2)  it is acquired, as first purchaser, by a qualified investor in respect of the qualified cooperative or qualified federation of cooperatives;

(3)  if interest is to be paid on the security, it bears interest at a maximum rate determined by resolution of the board of directors of the qualified cooperative or qualified federation of cooperatives, which interest must be non-cumulative and payable annually when decided by the board of directors if the financial situation of the qualified cooperative or qualified federation of cooperatives so allows; and

(4)  subject to section 7, it is redeemable or repayable only after the expiry of a period of at least five years beginning on the date of its issue.

2006, c. 37, s. 6.