Part 5 — Capital Structure Division 1 Membership Capital
138 Investment of patronage return
part that the directors may determine, of the patronage return of
each member in respect of each financial year be applied to the
purchase of shares in the cooperative for the member.
(2) A bylaw under subsection (1) must provide for the giving of
notice to each member of the number of shares purchased or to be
purchased for the member, the manner of issuance or transfer of
shares, the payment for the shares out of the patronage returns of
members and, if applicable, the issuance and forwarding of
certificates to members representing shares so issued or transferred.
(3) No member is required under this section to purchase
membership shares,
(a) in the case of membership shares with a par value, at a pr ice
in excess of their par value, and
(b) in the case of membership shares with no par value or
investment shares,
(i) if the articles provide for a fixed price or a price
determined in accordance with a formula, in excess of
that price, and
(ii) in any other case, in exces s of the fair market value of
the membership shares or the fair market value of the
investment shares.
(4) If shares of a cooperative are issued in payment of a patronage
return, the amount of the patronage return, stated as an amount of
money, must be added to the stated capital account.