Part 7 — Insider Trading
154 Specified insider
cooperative, means
(a) the cooperative;
(b) an affiliate of the cooperative;
(c) a director or an offi cer of the cooperative;
(d) a member who controls more than 10% of the voting rights
that may be exercised to elect or appoint a director of the
cooperative;
(e) a person who beneficially owns more than 10% of a class or
series of investment shares of the cooperative or who
exercises control or direction over more than 10% of the
votes attached to a class or series of investment shares of the
cooperative, excluding a securities underwriter who owns
investment shares under an underwriting agreement while
those investment shares are in the course of a distribution to
the public;
(f) a person employed or retained by the cooperative on a
professional or consulting basis;
(g) an individual who receives specific confidential information
from a person described in this subsection or in subsection
(2), and who has knowledge that the information is given by
such a person.
(2) For the purposes of this section, a director or an officer of an
entity, or an individual acting in a similar capacity, is deemed to
have been a specified insider of the cooperative for 6 months, or
any shorter period during which the individual was a director or an
officer of the entity, or acted in a similar capacity, before
(a) the entity becomes a speci fied insider of the cooperative or
enters into a business combination with the cooperative, or
(b) the cooperative be comes a specified insider of the entity.
(3) A specified insider who, in connection with a transaction in a
security of the cooperative or any of its affiliates, makes use of any
specific confidential information for the insider's own benefit or
advantage that, if generally known, might reasonably be expected
to have a material effect on the value of the security
(a) is liable to compensate an y person for any direct loss
suffered by that person as a result of the transaction unless
the information was known or in the exercise of reasonable
diligence should have been known to that person, and
(b) is accountable to the coopera tive for any direct benefit or
advantage received or receivable by the insider as a result of
the transaction.
(4) An action under subsection (3) may be commenced only within
2 years after discovery of the facts that gave rise to the cause of
action.