S-24 - Act respecting cooperative agricultural associations

Section 13 Disposition versions

1977-12-31

13. (1)  The board of directors of the association shall, in accordance with the provisions of this act and the by-laws of the association, administer all matters relating to the interests of the society, and, among other things, may:

(a)  Determine the conditions of any contract, being particularly careful to see that the interests of the association are protected. It shall require that the shareholder-producers bind themselves by contract in favour of their cooperative agricultural association for a period of at least three years, to deliver, sell, purchase or receive, through the latter, certain products or services. It must also exact the same undertaking from the affiliated producers;

(b)  Hypothecate the immoveables of the association in order to secure the payment of any debt or loan or the execution of any other obligation of the association, borrow money, dispose of, assign or transfer as security, for any sum borrowed or any security supplied, any of the securities or property of the association, either with or without power of sale, or upon any other special conditions considered suitable and useful, and give, if need be, in order to guarantee a loan, a pledge of the farm products and animals received on consignment from affiliated producers as well as from producers who are shareholders, provided that the board of directors of the association have been authorized to such effect by a vote of at least two thirds of the members present at the annual meeting or at a special meeting convened for such purpose;

(c)  Acquire moveables, live stock and immoveables, and resell the same;

(d)  Authorize all legal and judicial proceedings;

(e)  Transfer, in whole or in part, to a financial institution or to any other person, upon the conditions thought proper, the instalments due or to become due upon the shares subscribed by the shareholders, as collateral security for the payment of any loan made to the association by note or otherwise. Such transfer may also be made to any person whether he be or be not a director or officer of the association, who becomes or has become or undertakes to become surety of the association for the performance of obligations undertaken or to be undertaken by the association.

Any transfer made in virtue of this sub-paragraph e may be made by notarial instrument or in duplicate before witnesses, and shall be registered by deposit. It may be signified by means of a notice drawn up according to form 4, and addressed to each shareholder by registered or certified letter. The notary or bailiff who so signifies a transfer shall draw up a report thereof, a copy or duplicate of which shall be delivered to the association. The acknowledgments of receipt or notices of delivery signed by the postmaster shall be annexed to the original of the report or to one of the duplicates, and neither the notary nor the bailiff need deliver copies of them to the association. Nevertheless, the bailiff who draws up a return shall deliver to the transferee the duplicates to which the acknowledgments of receipt or notices of delivery are annexed.

Any person consenting to the cancellation of any such transfer shall have a notice of such cancellation served upon the shareholders. The notice of such cancellation shall be served in one or other of the manners mentioned in the last paragraph.

Every transferee who collects instalments in virtue of such a transfer shall give a receipt therefor in duplicate, a copy of which shall be delivered to the treasurer of the association. Mention of such receipt shall be made by the treasurer in the books of the association.

(2)  The total amount of the sums borrowed shall never exceed four times the aggregate amount of the subscribed shares and reserve fund.

R. S. 1964, c. 124, s. 13; 1975, c. 83, s. 84, s. 85.