S-24 - Act respecting cooperative agricultural associations

Section 5 Disposition versions

1977-12-31

5. (1)  The amount of each ordinary share shall be ten dollars, payable in accordance with the by-laws or, failing a by-law, in four annual and equal instalments, whereof the first shall be paid not later than one month after the date of subscription. The association may pay interest on such shares at a rate not exceeding six per cent per annum.

If so authorized by by-law, the board of directors may issue preferred shares. It shall fix the amount, the conditions of redemption and the privileges, rights and restrictions thereof. It shall determine the rate of interest thereon, which shall not exceed seven per cent per annum.

The holders of preferred shares shall not be entitled, as such, to receive notice of or to attend meetings of the association, to vote thereat or to hold any office in the association.

(2)  A cooperative agricultural association created between the 14th of February, 1920 and the 29th of December, 1922, which has issued shares of twenty dollars, may, by a by-law adopted at the annual meeting or at a special general meeting of the shareholders, decide to replace each of such shares of twenty dollars by two shares of ten dollars each, and enact that in future the shares to be issued shall be of ten dollars.

(3)  The association shall not commence operations until at least one-fourth of the amount of subscribed ordinary shares has been paid.

(4)  A shareholder shall be always at liberty to pay in advance, and the interest may be paid him out of the amount paid in advance, for the time to run from the date of payment to that of maturity.

(5)  The association may, two months after notice sent by registered or certified envelope to the registered holder at his last known address, summarily confiscate all the shares upon which no instalment has been paid for two years, and may dispose of such shares in the manner prescribed by by-law adopted by the directors.

(6)  To become a shareholder, a producer must

(a)  subscribe for at least five ordinary shares or such number of shares exceeding five as is fixed by by-law;

(b)  agree by contract, for a period of at least three years, to deliver, sell, purchase or receive certain products or services through the association;

(c)  be admitted by the board of directors.

No one, however, shall be admitted as a shareholder if he carries on any activity which competes with that of the association.

However, and under reserve of section 31, the associations formed prior to the fourth of April, 1930 shall continue to be governed by the provisions of the act in force before such date respecting the subscription for shares exigible from their shareholders.

(7)  A cooperative agricultural association may subscribe for and acquire ordinary or preferred shares in La Société coopérative fédérée des agriculteurs de la province de Québec in as large number as the charter and the by-laws of the latter permit.

(8)  The Board of directors of a cooperative agricultural association may, by agreement, bind itself towards the Société coopérative fédérée des agriculteurs de la province de Québec to subscribe to and pay on the capital stock of the said Société coopérative fédérée a proportion of the amount of its own ordinary shares paid-up at the date of the agreement, as well as of its ordinary shares which will thereafter be paid-up; the board of directors of the cooperative agricultural association shall bind itself, under the same agreement, to make its purchases and its sales through the intermediary of the Société coopérative fédérée des agriculteurs de la province de Québec.

R. S. 1964, c. 124, s. 5; 1975, c. 83, s. 84.