Canadian co-operative law

For nearly half a century, groups of Canadians desiring to supply themselves with goods, to market their products, or to obtain services of various kinds on a co-operative basis, have made increasing use of co-operative associations to achieve these purposes.

During that period legislation designed especially for for the incorporation and conduct of such associations has been enacted by all provincial legislatures. Other legisla lation designed to assist co-operatives has also been passed by the Canadian Parliament and in some provinces. Many judicial decisions have been rendered dealing specifically with the problems of co-operative associations and their members, especially in the income tax field.

This modest volume is believed to be the first attempt to make available in convenient form the main features of this legislation, to show how it reflects co-operative prin ciples and methods and to examine the more important judicial decisions relating to Canadian co-operatives,

In undertaking this venture a number of problems have been encountered. As the Royal Commission on Co-opera tives discovered, in its exhaustive examination of co operatives in 1945, there is no generally accepted termi nology to describe the details of their organizations and practices. The Report of the Commission stated: "Some co-operative terms have been suggested by the general philosophy of the movement: others have been borrowed appropriately, or inappropriately, from ordinary company and business usage. Accordingly, things called by the same name in two different associations may in fact and in law be different. Conversely, things called by different names may be the same."

Although certain general principles are common to all provincial co-operative Acts, their provisions vary greatly in detall and are amended frequently. Some Arts adopt general provisions of other provincial company legislation and others do not. As co-operatives are nearly all corpora tions, many of the provisions of the law relating to corporations generally are applicable; these are dealt with in company law texts. In this volume emphasis has been placed on those features of co-operative legislation which differ from general company provisions.

Having the legal aspects of co-operatives in mind, an attempt has been made to answer these questions:-How have co-operative principles and methods developed? How have they been put into practice in Canada? How are co operatives incorporated? How are they operated, and for whose benefit? Why and how do they differ from non co-operatives? What are the income tax problems of co operatives, and how should they be dealt with? It is hoped that the answers to these and other questions relating to co-operatives will be found here, and that they will be of interest and value to those now engaged in co-operative enterprises, and also those contemplating such ventures.

That type of co-operative known as a credit union or caisse populaire, which is rapidly increasing in importance. deserves more space than is given to it in the chapter devoted to that subject.

It has been noted that the formation and operation of co-operatives, especially credit unions or caisses populaires. serve as common ground for economic and social ventures by English and French speaking Canadians alike, and the most apparent difference seems to be that the former spell "co-operative" with a hyphen, and the latter do not The writer wishes to acknowledge with thanks the encouragement and assistance of all those who have co operated in making this venture possible. I have profited by the kindness of friends, who have read all or part of the manuscript.