Part 5 — Capital Structure Division 1 Membership Capital
134 Adjustment of stated capital account
cooperative must adjust the stated capital account in relation to
those shares by the ratio of the stated capital for those shares to that
class.
(2) A cooperative must adjust its stated capital account in
accordance with any special resolution made under section 133(1).
(3) On a conversion of investment shares of a cooperative into
investment shares of another class or series or a change under
section 264, a reorganization under section 278 or the redemption
or exchange of investment shares under an order made under
section 357, the cooperative must
(a) deduct from the stated ca pital account maintained for the
class or series of investment shares converted or changed, or
subjected to the reorganization, redemption or exchange, an
amount equal to the result obtained by multiplying the stated
capital of the investment shares of that class or series by the
number of investment shares of that class or series
converted or changed, or subjected to the reorganization,
redemption or exchange, divided by the number of issued
investment shares of that class or series immediately before
the conversion, change, reorganization, redemption or
exchange, and
(b) add the result obtained und er clause (a) and any additional
amount received pursuant to the conversion, change,
reorganization, redemption or exchange to the stated capital
account maintained or to be maintained for the class or
series of investment shares into which the investment shares
have been converted or changed.
(4) For the purposes of subsection (3) and subject to the articles, if
a cooperative issues 2 classes of investment shares and there is
attached to each such class a right to convert an investment share of
the one class into an investment share of the other class, if an
investment share of one class is converted into an investment share
of the other class, the amount of stated capital attributable to an
investment share in either class is the aggregate of the stated capital
of both classes divided by the number of issued investment shares
of both classes immediately before the conversion.
(5) For the purposes of this section, a cooperative holding
investment shares in itself as permitted by section 127 is deemed
not to have redeemed or acquired them.
(6) Investment shares issued by a cooperative and converted into
investment shares of another class or series, changed under section
264 or subjected to a reorganization under section 278 or the
redemption or exchange of investment shares under an order made
under section 357 become investment shares of the other class or
series of investment shares.
(7) If the articles limit the number of authorized investment shares
of a class of investment shares of a cooperative and issued
investment shares of that class or of a series of that class have
become, under subsection (6), issued investment shares of another
class or series, the number of unissued investment shares of the
first-mentioned class is, unless the articles provide otherwise,
increased by the number of investment shares that, under
subsection (6), became investment shares of another class or series.