Marginal note:Resolution if proposed fundamental change
358. A non-profit housing cooperative may not be a party to a fundamental change to which Part 16 applies unless the change is authorized by a vote of not less than ninety per cent of the members.
PART 21ADDITIONAL PROVISIONS RESPECTING WORKER COOPERATIVES
Definition of “worker cooperative”
359. (1) For the purposes of this Part, “worker cooperative” means a cooperative whose prime objectives are to provide employment to its members and to operate an enterprise in which control rests with the members.
Marginal note:Requirements of articles
(2) The articles of a worker cooperative must provide that
(a) no person may be admitted to membership unless the person is an individual and an employee of the cooperative; and
(b) the maximum membership investment payable by a person to be a member may not be more than fifty per cent of their expected annual salary during the first year of their membership, unless any amount in excess of that amount is also paid equally by all persons who are members.
Marginal note:Non-member employees
(3) Despite subsection (2), a worker cooperative may provide employment to non-members if, not later than five years after the incorporation of the cooperative or the acquisition of a business by the cooperative, not less than seventy-five per cent of its permanent employees or those of any entity controlled by it are members.
Marginal note:Permanent employees
(4) For the purpose of subsection (3), the following persons are not permanent employees:
(a) a person who is employed on a probationary period of less than three years; or
(b) a person who is under contract for a period of less than two years.
360. (1) The by-laws of a worker cooperative must include
(a) any obligation of a member to provide capital to the cooperative, which capital, if required, must be applied fairly to all members;
(b) subject to subsections (2) and (3), the manner in which the membership of a member may be terminated;
(c) the procedure for allocating, crediting or distributing any surplus earnings of the cooperative, including that not less than fifty per cent of those earnings must be paid on the basis of the remuneration earned by the members from the cooperative or the labour contributed by the members to the cooperative;
(d) the period of probation of an applicant for membership, which may not be longer than three years;
(e) how work is to be allocated;
(f) a provision for the laying off or suspending of members when there is a lack of work; and
(g) a provision for the recall of members to work.
Marginal note:Termination of membership
(2) If the by-laws provide that membership is to be terminated by the directors, the by-laws must include a right of appeal to the members. Despite section 40, the by-laws may require that an appeal from the decision of the directors may only be launched within seven days after the member receives notice of the termination of membership.
Marginal note:Laid-off member
(3) A temporary lay-off of a member does not result in termination of their membership. After a member has been laid off and two years have elapsed after the date of the lay-off without the member having resumed employment with the cooperative, the directors or the members may, in accordance with the by-laws, terminate the membership of the member.
Marginal note:Confirmation on appeal
(4) A decision of the directors to terminate the membership of a member is confirmed if the members, at a duly called meeting of the members, do not reverse the directors’ decision.
Marginal note:Deemed confirmation
(5) If a meeting of the members is duly called to consider the appeal of a terminated member and a quorum of members is not available for the meeting, the directors must call a second meeting to be held, despite section 52, not later than seven days after the first meeting. If, at the second meeting, there is no quorum of members, the decision of the directors is deemed to be confirmed.
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