Part 5 — Capital Structure Division 1 Membership Capital
126 Holding own shares
(a) hold any shares in itself or in its holding corporation, o r
(b) permit any of its subsidi aries to hold shares in the
cooperative, other than
(i) the minimum number of membership shares required by
the bylaws of the cooperative to qualify for membership
in it, and
(ii) shares subscribed for and i ssued to the subsidiary by the
application of patronage returns to their purchase.
(2) A cooperative must cause any subsidiary that holds shares in
the cooperative contrary to subsection (1) to dispose of those shares
no later than 5 years after the date on which
(a) it became a subsidiary, or
(b) the cooperative was continued under this Act.