Canada Cooperatives Act

Marginal note:Powers of liquidator

• 321 (1) A liquidator may

  • (a) retain lawyers, notaries, accountants, engineers, appraisers and other professionals;

  • (b) bring, defend or take part in any civil, criminal, administrative, investigative or other action or proceeding in the name and on behalf of the cooperative;

  • (c) carry on the business of the cooperative as required for an orderly liquidation;

  • (d) sell any property of the cooperative by public auction or private sale;

  • (e) do all acts and execute any documents in the name and on behalf of the cooperative;

  • (f) borrow money on the security of the property of the cooperative;

  • (g) settle or compromise any claims by or against the cooperative; and

  • (h) do all other things necessary for the liquidation of the cooperative and the distribution of its property.

• Marginal note:Due diligence

  (2) A liquidator is not liable under this Part if the liquidator exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on

  • (a) financial statements of the cooperative represented to the liquidator by an officer of the cooperative or in a written report of the auditor of the cooperative fairly to reflect the financial condition of the cooperative; or

  • (b) a report of a person whose profession lends credibility to a statement made by the professional person.

• Marginal note:Application to court

  (3) If a liquidator has reason to believe that any property of the cooperative is in the possession or control of a person or that anyone has concealed, withheld or misappropriated any property of the cooperative, the liquidator may apply to the court for an order requiring the person to appear before the court at the time and place designated in the order and to be examined.

• Marginal note:Power of court

  (4) If the examination discloses that the person has concealed, withheld or misappropriated property of the cooperative, the court may order the person to restore it or pay compensation to the liquidator.