1. Co-Operatives

2. Co-Operatives
Equity Co-Operatives in Toronto used to give one vote to each unit, but now share is based on size of property proportional to the entire co-operative
Regulated by Financial Services Commission of Ontario (FSCO)
Operated under Co-Operative Corporations Act; member-owned and controlled
By-laws control day-to-day operation

3. Co-Operatives
Act requires that each member has one vote, regardless of their invested amount
Act regulates offering statements and related disclosures
E.g. when securities are sold beyond basic membership shares
Distribution of surplus funds on the termination of equity co-operative
Registration must be done under Sections 4, 5, 6
Specific number of people required to be able to file Articles of Incorporation + other documents
FSCO issues certificate of incorporation after payment of fee

4. Co-Operatives
Co-operative Branch and the Credit Union can provide information about:
The procedure for registration
Ongoing record-keeping/filing requirements
Other information related to offering statements (such as offerings for share purchase by public)
Types of co-ops other than housing co-ops:
Supply co-op
Service co-op
Milk transport co-op
Marketing co-op etc.

5. Co-Operatives
Co-ops normally require approval of the Board of Directors for a pledge of share or assignment of an occupancy agreement – this makes the purchase process more complicated
Entire co-op property is normally mortgaged – joint liability of all owners based on proportionate share in co-op
Lenders are normally reluctant to provide financing against share in a co-op, and they will require a personal guarantee from co-op share owner
Buyers should only purchase a share in a co-op if they are assured that the seller has paid off outstanding obligations

6. Co-Operatives Types of Co-Operatives
Equity Co-Operatives (with share capital)
Condo Corp. owns the land and buildings and members are shareholders in the Corp.
Shareholders own shares and have share certificate as well as occupancy agreement for their specific units
If the corp. is dissolved, liabilities are paid after which remaining amount will be divided between shareholders
Non-Profit Co-Operatives (without share capital)
Main objective of non-profit co-ops is to provide housing for members without any gain for them
If the corp. is dissolved, liabilities will be paid after which remaining property will be paid to non-profit housing co-ops or charitable organizations