Part 18 — Specific Cooperatives Division 1 Housing Cooperatives
389 Special limitations on non-profit housing cooperatives
cooperatives:
(a) its activities must be carri ed on without the purpose of gain
for its members;
(b) subject to clause (c), on dissolution and after the paymen t of
its debts and liabilities, the remaining property of the
non-profit housing cooperative is to be transferred to, or
distributed among, one or more non-profit housing
cooperatives, non-profit organizations or charitable
organizations;
(c) notwithstanding section 309(1)(c), a non-profit housing
cooperative must not distribute any of its property or pay
any money to its members except
(i) amounts owed to a member , including share capital,
patronage returns or interest on a member loan or any
other loan from the member at a rate not exceeding the
maximum annual percentage specified in the articles, or
(ii) reasonable amounts for goods or services provided by a
member;
(d) a non-profit housing cooperative may not pay any dividends
or interest on membership shares to its members;
(e) notwithstanding section 137 and any regulations made under
section 9(1), a non-profit housing cooperative may only
allocate among or credit and pay to the members all or part
of the surplus arising from the operations of the cooperative
in a financial year as a patronage return;
(f) subject to section 390, a non-profit housing cooperative m ay
not amend its articles to change from a non-profit housing
cooperative to any other type of cooperative or corporation.
(2) A non-profit housing cooperative must incorporate in its
articles the restrictions set out in subsection (1).
2001 cC-28.1 s389;2001 c23 s1(6)