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S.M. 1985-86, c. 36
An Act to amend The Cooperatives Act
(Assented to July 11, 1985)
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
Subsection 85(4) of The Cooperatives Act, being chapter 47 of the Statutes of Manitoba, 1976 (chapter C223 of the Continuing Consolidation of the Statutes of Manitoba), is repealed and the following subsection is substituted therefor:
Directors' and officers' insurance.
A cooperative may purchase and maintain insurance for the benefit of any person referred to in subsection (1) against any liability incurred by the person
(a) as a director or officer of the cooperative, except where the liability relates to a failure to act honestly and in good faith with a view to the best interests of the cooperative; or
(b) as a director or officer of another body corporate where the person acts or acted in that capacity at the request of the cooperative, except where the liability relates to a failure to act honestly and in good faith with a view to the best interests of the body corporate.
Subsecs. 155(4) and (5) rep. and sub.
Subsections 155(4) and (5) of the Act are repealed and the following subsections are substituted therefor:
Upon the liquidation and dissolution of a cooperative and after payment of all debts and liabilities thereof, including any declared and unpaid dividends and any amounts paid upon outstanding shares, the remaining property of the cooperative shall be distributed or disposed of
(a) to another cooperative; or
(b) to an organization or association that is a registered Canadian charity or a registered Canadian amateur athletic association for the purposes of The Income Tax Act (Canada); or
(c) to The Co-operative Promotion Board; or
(d) equally among the persons, who were members of the cooperative during the fiscal year in which it was resolved to liquidate and dissolve the cooperative, or who were members of the cooperative during the fiscal year in which the cooperative ceased to carry on active business; or
(e) among the persons who were members of the cooperative during the fiscal year of the cooperative in which the cooperative ceased to carry on active business and the 5 fiscal years of the cooperative immediately preceding that fiscal year, on the basis of the patronage dividends allocated to those persons during those fiscal years; or
(f) among the persons, who were members of the cooperative during the fiscal year in which it was resolved to liquidate and dissolve the cooperative, or who were members of the cooperative during the fiscal year in which the cooperative ceased to carry on active business, on the basis of patronage dividends allocated to those members during a period of not less than 3 years as shall be prescribed in the articles or charter by-laws of the cooperative; or
(g) in accordance with any combination of clauses (a), (b), (c), (d), (e) and (f) or any number thereof; or
(h) to such persons as the regulations may prescribe.
Distribution of property of community service cooperatives.
Notwithstanding subsection (4), a cooperative that in the opinion of the Registrar was operated entirely for purposes of community service shall, upon the liquidation and dissolution thereof and after payment of all its debts and liabilities, distribute or dispose of its remaining property
(a) to another cooperative that in the opinion of the Registrar is operating entirely for purposes of community service; or
(b) to an organization or association that is a registered Canadian charity or a registered Canadian amateur athletic association for the purposes of the Income Tax Act (Canada); or
(c) to The Co-operative Promotion Board; or
(d) in accordance with any combination of clauses (a), (b) and (c) or any 2 thereof; or
(e) to such persons as the regulations may prescribe.
"Co-operative Promotion Board" defined.
In subsections (4) and (5), "The Co-operative Promotion Board" means The Co-operative Promotion Board established under The Wheat Board Money Trust Act.
This Act comes into force on the day it receives the royal assent.