Although the enabling legislation remains unexpectedly stalled in Parliament during its seven-week Christmas break, new federal co-operatives legislation should be approved by the end of February, says a national co-op official.
It means that by autumn, Canada’s federally regulated co-operatives will have new rules to live by, offering them more flexibility in the marketplace, said Mary Pat MacKinnon, director of policy for the Canadian Co-operatives Association.
When the Senate adjourned Dec. 18, legislation was awaiting hearings by the Senate banking committee.
“We would have preferred it be passed before Christmas but this is not a huge problem,” MacKinnon said. “We have been told it will be approved by the end of February.”
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Then will come months of regulation writing and consultation. MacKinnon expects to see it made into law by fall 1998.
The new legislation will allow amalgamations and mergers, the injection of non-voting investment capital, designation of board seats to represent non-member investors and protection for dissenting members who want to withdraw their capital if they disagree with a decision of the membership majority to change directions or to restructure.
The new bill will give federal co-ops many of the same market rules that apply to their non-co-op competitors.
