Legal and corporate issues Flashcards
Where was Yomi Oduwobi from?
credit union central of Manitoba
credit unions definition
financial co-operatives which are owned and controlled by the members who use their services
Are credit unions incorporated federally or provincially?
both
How many communities in Manitoba where a credit union is the only financial institution in town?
68 communities
Types of legal organization forms
sole proprietorship partnership corporation none share capital corporation share capital co-operative (for-profit) co-operative (not-for-profit)
Factors when deciding type of incorporation as co-op
objectives of organization
organization national or local
tax treatment of the organization
Federal incorporation
for co-ops that operate businesses in more than one province
Does legislation vary in each province?
Yes
What does varying legislation between provinces depend on?
The federal act
Incorporation choices as a co-op
for profit or not for profit
provincial or national
Share capital (for profit) co-op
- limited liability and continuity of the business as membership changes
- can use co-op designation in the legal name
- allows members investment to take form of a share purchase
Non-share capital (non profit) co-op
- limited liability and continuity of the business as membership changes
- can use co-op designation in the legal name
DIFFERENCE: the members investment is limited to a loan
Difference between share and non-share capital co-op?
with share- members investment= form of share purchase
non-share- members investment= limited to a loan
To register as a charity, an organization must devote itself to? (4 options)
1) relief of poverty
2) advancement of education
3) advancement of religion
4) other purposes beneficial to the community not falling under the other 3 purposes
how many co-operative charities operating in Canada?
375
Articles of incorporation must include:
name of co-operative address # of members # of directors name and addresses of first directors purpose of forming co-op # of authorized capital shares
Things that should be in by-laws (5 things)
1) share or loan arrangements
2) fiscal year
3) distribution of surplus
4) election and terms of office
5) dissolution procedures
Acts that co-ops are dictated by?
Co-operative Acts
Income Tax Act
Competition Act
Federal Lobbying Act
Income Tax act
places certain obligations upon directors of organizations
Competition act
to encourage competition and prohibit unfair business practices
Federal Lobbying act
governs the conduct of lobbyists
multi-stakeholder co-op
different types of co-ops working together
first country and year to adopt multi-stakeholder model?
Italy, 1991
Membership classes (2 types)
Main classes: workers, consumers, producers
Supporter classes: community members, investor members
