Reporting Requirements for Co-operatives

1. Reporting Requirements for Co-operatives Ronald Skibbens, Inspector of Co-operatives September 14, 2006 Stellarton, Nova Scotia

2. Agenda • Background • Co-operative Associations Act and Regulations • Online data • Online forms

3. Background on co-ops • 800 million members world-wide • additional 100 million persons employed by co-operatives. • The total of persons whose livelihoods are to a significant extent made secure by co-operative enterprise approaches three billion people, half the World's population. United Nations World Summit on Social Development in Copenhagen in 1995

4. Seven International Cooperative Principles • Voluntary and Open Membership • Democratic Member Control • Member Economic Participation • Autonomy and Independence • Education, Training and Information • Co-operation among Co-operatives • Concern for Community International Co-operative Alliance

5. Co-operatives in Nova Scotia • Number • Type • Marketing or consumer • For-profit or non-profit • How members join • Shares or membership fees

8. How members join SharesMembership fees For profit x Non profit x

9. Co-operative Associations Act and Regulations • Capital and reserves • AGM’s • Auditor • Board of directors • Special resolutions • Annual filings

10. Capital and reserves • Capital • shares (fully paid for) and includes preference shares (except for associations limited by membership); • loan capital; • retained earnings including reserves; • contributed surplus • Par value, unless approved by Inspector • General Reserve as set out in the by-laws

11. AGM requirements • Organizational meeting within 4 months of incorporation • Annual meetings not later than four months after FYE • Inspector can call • Roberts Rules • Notice and order of business • Provision for lack of quorum

12. Appointment of Auditor • Members shall appoint an auditor at each annual meeting unless two thirds consent in writing not to appoint an auditor • Inspector can appoint at any time

13. Board of directors • Minimum of 3, no maximum • Must approve new members • On behalf of the coop, they have first right to shares at (or with the approval of the Inspector, below) par

14. Special resolutions • Requirements • Proper notice • Quorum • 2/3’s majority • approved by the Inspector and filed with the Registrar.

15. Special resolutions • sell, mortgage, lease or otherwise dispose of the property or undertakings of the association or any part thereof; • guarantee the performance of obligations or contracts of any other person and, as security for such guarantee, charge the whole or any part of the property of the association;

16. Special resolutions • acquire or undertake the whole or any part of the business, property, liabilities and undertaking of any other association, person, company or society, carrying on any business which the association is authorized to carry on, or possessed of property suitable for the purpose of the association • acquire and hold shares, stock, debentures or take securities of or acquire and hold membership in any other company, association or society incorporated under any Act of any province of Canada or under any Act of the Province or of Canada having objects wholly or in part similar to those of the association, and sell or otherwise deal with the same;

17. Other special resolutions • Amend articles and by-laws • Change name • Amalgamation • Dissolution and wind-up

18. Annual filings • List of officers and directors • Financial report • Renewal fee

20. Online data: www.rjsc.ca

25. Online forms

27. Questions