Last Updated:
October 29, 2019
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Matt Dolf
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Rule 12: Redemption of shares
12.1 Co-op authorized to purchase and redeem its shares
Subject to the Act, the Co-op may, by a resolution of the Directors, redeem any of its shares at the price and on the terms specified by the resolution.
12.2 Redemption of shares on cessation of membership
Subject to these Rules and the Act, the Co-op must redeem the shares of a person who withdraws from membership, whose membership is terminated, or whose membership ceases for any reason.
12.3 Amount paid on redemption
A member is entitled to the amount paid up on the share on redemption by the Co-op.
12.4 Lien on shares
The Co-op shall have a lien on a member’s shares for a debt or any other amount whatsoever due to the Co-op by the member and the lien will extend to the proceeds of any redemption or sales of the shares.
12.5 Redemption or sale to satisfy a debt due to the Co-op
Despite any other provisions of this Rule, the Directors may, upon 30 days written notice to a member, cause the Co-op to sell or redeem all or a sufficient number of the shares of the member to satisfy the lien of the Co-op.
12.6 Debt to be satisfied first
Upon any sale or redemption of shares, the Directors must apply the proceeds of the sale or redemption in satisfaction of the lien of the Co-op by the member and any surplus or excess from the proceeds will be paid to the member or other person entitled to the shares.
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