Are co-ops legal, like companies and societies?
Yes, cooperatives can be incorporated under the relevant provincial or federal legislation governing them. For example, in British Columbia the provincial Cooperative Association Act provides the framework for incorporation. Just as with an incorporated company or a society, incorporating a co-operative creates a legal entity that can apply for loans, purchase property or equipment and engage in contracts and other business activities in its name.Incorporation also limits the liability of directors and members to the amount of their financial investment in the cooperative. Directors of cooperatives have the same responsibility to “direct and protect” the co-operative’s business and assets as do the directors of companies and societies.There are groups that consider themselves to be cooperatives but have not incorporated, however, only an incorporated cooperative has the legal right to use the word “cooperative” in its name. More information about incorporating a cooperative is at the B
Yes, cooperatives can be incorporated under the relevant provincial or federal legislation governing them. For example, in British Columbia the provincial Cooperative Association Act provides the framework for incorporation. Just as with an incorporated company or a society, incorporating a co-operative creates a legal entity that can apply for loans, purchase property or equipment and engage in contracts and other business activities in its name.Incorporation also limits the liability of directors and members to the amount of their financial investment in the cooperative. Directors of cooperatives have the same responsibility to “direct and protect” the co-operative’s business and assets as do the directors of companies and societies.There are groups that consider themselves to be cooperatives but have not incorporated, however, only an incorporated cooperative has the legal right to use the word “cooperative” in its name.
