2 Cooperative principles
operated, and carries on business, on a cooperative basis if
(a) membership is available to persons who can use the service s
of the cooperative and who are willing and able to accept
the responsibilities of and abide by the terms of
membership,
(b) each member or deleg ate has only one vote,
(c) no member or delegate may vote by proxy,
(d) interest on any member lo an is limited to a maximum rate
fixed in the articles,
(e) dividends on any membership share are limited to the
maximum rate fixed in the articles,
(f) to the extent feasible, members provide the capital requir ed
by the cooperative,
(g) surplus funds arising from the cooperative's operations ar e
used
(i) to develop its business,
(ii) to provide or improve common services to members,
(iii) to provide for reserves or the payment of interest on
member loans or dividends on shares,
(iv) for community welfare or the propagation of cooperative
enterprises, or
(v) as a distribution among its members as a patronage
return,
a n d
(h) it provides education on the principles of cooperative
enterprises.
(2) Subsection (1)(a) is subject to any restrictions set out in the
articles so long as the restrictions are consistent with applicable
laws with respect to human rights.