April 23, 2009
Province Introduces Proposed Amendments To The Co-Operatives Act
Finance Minister Greg Selinger introduced legislation today that would better protect member investors in co-operatives and allow agricultural co-ops and their members to benefit from federal tax initiatives.
Some of the proposed amendments to the act would:
· clarify the framework for exemption orders for issuing securities,
· allow the registrar to issue a cease-trading order,
· provide for a cooling-off period for member investors,
· allow agricultural co-operatives and their members to take advantage of federal tax initiatives for patronage returns,
· require notification to member investors if a co-operative has not fulfilled its obligations when selling securities,
· increase fines to levels consistent with similar legislation in other jurisdictions
The minister noted the changes would help agricultural co-operatives retain capital to provide for current operations and growth.
- 30 -