BILL NO. 190

(as introduced)

2nd Session, 60th General Assembly
Nova Scotia
57 Elizabeth II, 2008

Government Bill

Co-operative Associations Act
(amended)

The Honourable Jamie Muir
Minister of Service Nova Scotia and Municipal Relations

First Reading: October 30, 2008

(Explanatory Note)

Second Reading: November 7, 2008

Third Reading: November 18, 2008 (WITH COMMITTEE AMENDMENTS) (LINK TO BILL AS PASSED)

This Bill permits a co-operative association to issue preference shares.

1 Subsection 20(1) of Chapter 98 of the Revised Statutes, 1989, the Co-operative Associations Act, is repealed and the following subsections substituted:

(1) An association may issue one or more classes of preference shares.

(1A) The classes of preference shares referred to in subsection (1) are subject to the terms and conditions provided for in the by-laws of the association.

(1B) The holder of preference shares may dissent if the association

(a) amends its by-laws to add, change or remove the rights, privileges, restrictions or conditions attached to preference shares;

(b) amends its articles of incorporation or by-laws to add, change or remove any restrictions on the business or businesses that the association carries on;

(c) amalgamates with another association;

(d) continues under the laws of another jurisdiction; or

(e) sells, leases or exchanges all or substantially all of its property other than in the ordinary course of business.

(1C) The Third Schedule of the Companies Act applies mutatis mutandis to dissent procedures for associations and preference shareholders.