R-8.1.1 - Cooperative Investment Plan Act

Section 3 Disposition versions

2019-12-11

3. In this Act, “qualified cooperative” means, subject to the second paragraph, a cooperative governed by the Cooperatives Act (chapter C-67.2) that meets the following conditions at the end of the last fiscal period ending in the calendar year that precedes the year in which the cooperative applies for authorization to issue preferred shares for the purposes of this Act in accordance with Chapter V of Schedule C to the Act respecting the sectoral parameters of certain fiscal measures (chapter P-5.1):

(1)  the cooperative is

(a)  a work cooperative,

(b)  a shareholding workers cooperative,

(c)  a solidarity cooperative that would be a work cooperative but for its supporting members,

(d)  a producers cooperative or a solidarity cooperative that would be a producers cooperative but for its supporting members, so long as at least 90% of the goods or services it provides, including those provided through a partnership or a controlled subsidiary, are provided to persons or partnerships that procure those goods or services for the purpose of earning income from a business,

(d.1)  a solidarity cooperative, with or without supporting members, that consists of worker members and user members, so long as each user member of the cooperative is a producer and at least 90% of the goods or services it provides, including those provided through a partnership or a controlled subsidiary, are provided to persons or partnerships that procure those goods or services for the purpose of earning income from a business, or

(e)  a farm cooperative;

(2)  its central management is in Québec;

(3)  more than 50% of the wages paid to its employees were paid to employees who, within the meaning of the regulations under section 771 of the Taxation Act (chapter I-3), are employees of an establishment situated in Québec;

(4)  in the case of a shareholding workers cooperative, the majority of the assets held by the legal person of which the cooperative is a shareholder are situated in Canada and, in any other case, the majority of the assets held by the cooperative, including those held by a controlled subsidiary, by a partnership of which the cooperative is the majority member or by a trust to which the cooperative has transferred property, are situated in Canada;

(5)  its capitalization rate is less than 60%, except where the cooperative is

(a)  a shareholding workers cooperative,

(b)  a work cooperative or a solidarity cooperative that would be a work cooperative but for its supporting members, the majority of whose employees are seasonal workers, or

(c)  a cooperative that has obtained an exemption in accordance with Chapter IV;

(6)  its equity other than securities issued for the purposes of this Act and of the Cooperative Investment Plan adopted under the Act respecting the Ministère de l’Économie et de l’Innovation (chapter M-14.1) is equal to at least 80% of that equity on 23 April 1985; and

(7)  the Minister is of the opinion that the cooperative is in compliance with the Cooperatives Act.

If the cooperative described in the first paragraph is a shareholding workers cooperative, the legal person of which the cooperative holds shares must meet the following conditions at the end of the legal person’s last fiscal period ending in the calendar year that precedes the year in which the cooperative applies for authorization to issue preferred shares for the purposes of this Act in accordance with Chapter V of Schedule C to the Act respecting the sectoral parameters of certain fiscal measures:

(1)  its central management is in Québec; and

(2)  more than 50% of the wages paid to its employees and, where applicable, to the employees of the legal persons with which it is associated, within the meaning of the Taxation Act, were paid to employees who, within the meaning of the regulations under section 771 of that Act, are employees of an establishment situated in Québec.

For the purposes of the first and second paragraphs, in the case of a cooperative or legal person in its first fiscal period, the reference to the end of its last fiscal period ending in the calendar year that precedes the year in which the cooperative applies for authorization to issue preferred shares for the purposes of this Act in accordance with Chapter V of Schedule C to the Act respecting the sectoral parameters of certain fiscal measures, is to be replaced by a reference to the end of the first fiscal period of the cooperative or legal person, if the Minister is satisfied that, at the end of that first fiscal period, the cooperative or legal person will meet all the conditions applicable to it.

2006, c. 37, s. 3; 2010, c. 25, s. 244; 2012, c. 1, s. 71; 2013, c. 10, s. 214; 2019, c. 29, s. 1.

2013-06-05

3. In this Act, “qualified cooperative” means, subject to the second paragraph, a cooperative governed by the Cooperatives Act (chapter C-67.2) that meets the following conditions at the end of the last fiscal period ending in the calendar year that precedes the year in which the cooperative applies for authorization to issue preferred shares for the purposes of this Act in accordance with Chapter V of Schedule C to the Act respecting the sectoral parameters of certain fiscal measures (chapter P-5.1):

(1)  the cooperative is

(a)  a work cooperative,

(b)  a shareholding workers cooperative,

(c)  a solidarity cooperative that would be a work cooperative but for its supporting members,

(d)  a producers cooperative or a solidarity cooperative that would be a producers cooperative but for its supporting members, so long as at least 90% of the goods or services it provides, including those provided through a partnership or a controlled subsidiary, are provided to persons or partnerships that procure those goods or services for the purpose of earning income from a business,

(d.1)  a solidarity cooperative, with or without supporting members, that consists of worker members and user members, so long as each user member of the cooperative is a producer and at least 90% of the goods or services it provides, including those provided through a partnership or a controlled subsidiary, are provided to persons or partnerships that procure those goods or services for the purpose of earning income from a business, or

(e)  a farm cooperative;

(2)  its central management is in Québec;

(3)  more than 50% of the wages paid to its employees were paid to employees who, within the meaning of the regulations under section 771 of the Taxation Act (chapter I-3), are employees of an establishment situated in Québec;

(4)  in the case of a shareholding workers cooperative, the majority of the assets held by the legal person of which the cooperative is a shareholder are situated in Canada and, in any other case, the majority of the assets held by the cooperative, including those held by a controlled subsidiary, by a partnership of which the cooperative is the majority member or by a trust to which the cooperative has transferred property, are situated in Canada;

(5)  its capitalization rate is less than 60%, except where the cooperative is

(a)  a shareholding workers cooperative,

(b)  a work cooperative or a solidarity cooperative that would be a work cooperative but for its supporting members, the majority of whose employees are seasonal workers, or

(c)  a cooperative that has obtained an exemption in accordance with Chapter IV;

(6)  its equity other than securities issued for the purposes of this Act and of the Cooperative Investment Plan adopted under the Act respecting the Ministère du Développement économique, de l’Innovation et de l’Exportation (chapter M-30.01) is equal to at least 80% of that equity on 23 April 1985; and

(7)  the Minister is of the opinion that the cooperative is in compliance with the Cooperatives Act.

If the cooperative described in the first paragraph is a shareholding workers cooperative, the legal person of which the cooperative holds shares must meet the following conditions at the end of the legal person’s last fiscal period ending in the calendar year that precedes the year in which the cooperative applies for authorization to issue preferred shares for the purposes of this Act in accordance with Chapter V of Schedule C to the Act respecting the sectoral parameters of certain fiscal measures:

(1)  its central management is in Québec; and

(2)  more than 50% of the wages paid to its employees and, where applicable, to the employees of the legal persons with which it is associated, within the meaning of the Taxation Act, were paid to employees who, within the meaning of the regulations under section 771 of that Act, are employees of an establishment situated in Québec.

For the purposes of the first and second paragraphs, in the case of a cooperative or legal person in its first fiscal period, the reference to the end of its last fiscal period ending in the calendar year that precedes the year in which the cooperative applies for authorization to issue preferred shares for the purposes of this Act in accordance with Chapter V of Schedule C to the Act respecting the sectoral parameters of certain fiscal measures, is to be replaced by a reference to the end of the first fiscal period of the cooperative or legal person, if the Minister is satisfied that, at the end of that first fiscal period, the cooperative or legal person will meet all the conditions applicable to it.

2006, c. 37, s. 3; 2010, c. 25, s. 244; 2012, c. 1, s. 71; 2013, c. 10, s. 214.

2012-03-05

3. In this Act, “qualified cooperative” means, subject to the second paragraph, a cooperative governed by the Cooperatives Act (chapter C-67.2) that meets the following conditions at the end of the last fiscal period ending in the calendar year that precedes the year in which the cooperative applies for authorization to issue preferred shares for the purposes of this Act in accordance with Chapter V of Schedule C to the Act respecting the sectoral parameters of certain fiscal measures (chapter P-5.1):

(1)  the cooperative is

(a)  a work cooperative,

(b)  a shareholding workers cooperative,

(c)  a solidarity cooperative that would be a work cooperative but for its supporting members,

(d)  a producers cooperative or a solidarity cooperative that would be a producers cooperative but for its supporting members, so long as at least 90% of the goods or services it provides, including those provided through a partnership or a controlled subsidiary, are provided to persons or partnerships that procure those goods or services for the purpose of earning income from a business,

(d.1)  a solidarity cooperative, with or without supporting members, that consists of worker members and user members, so long as each user member of the cooperative is a producer and at least 90% of the goods or services it provides, including those provided through a partnership or a controlled subsidiary, are provided to persons or partnerships that procure those goods or services for the purpose of earning income from a business, or

(e)  a farm cooperative;

(2)  its central management is in Québec;

(3)  more than 50% of the wages paid to its employees were paid to employees who, within the meaning of the regulations under section 771 of the Taxation Act (chapter I-3), are employees of an establishment situated in Québec;

(4)  in the case of a shareholding workers cooperative, the majority of the assets held by the legal person of which the cooperative is a shareholder are situated in Canada and, in any other case, the majority of the assets held by the cooperative, including those held by a controlled subsidiary, by a partnership of which the cooperative is the majority member or by a trust to which the cooperative has transferred property, are situated in Canada;

(5)  its capitalization rate is less than 60%, except in the case of a work cooperative, a shareholding workers cooperative, a solidarity cooperative that would be a work cooperative but for its supporting members, or a cooperative that has obtained an exemption in accordance with Chapter IV;

(6)  its equity other than securities issued for the purposes of this Act and of the Cooperative Investment Plan adopted under the Act respecting the Ministère du Développement économique, de l’Innovation et de l’Exportation (chapter M-30.01) is equal to at least 80% of that equity on 23 April 1985; and

(7)  the Minister is of the opinion that the cooperative is in compliance with the Cooperatives Act.

If the cooperative described in the first paragraph is a shareholding workers cooperative, the legal person of which the cooperative holds shares must meet the following conditions at the end of the legal person’s last fiscal period ending in the calendar year that precedes the year in which the cooperative applies for authorization to issue preferred shares for the purposes of this Act in accordance with Chapter V of Schedule C to the Act respecting the sectoral parameters of certain fiscal measures:

(1)  its central management is in Québec; and

(2)  more than 50% of the wages paid to its employees and, where applicable, to the employees of the legal persons with which it is associated, within the meaning of the Taxation Act, were paid to employees who, within the meaning of the regulations under section 771 of that Act, are employees of an establishment situated in Québec.

For the purposes of the first and second paragraphs, in the case of a cooperative or legal person in its first fiscal period, the reference to the end of its last fiscal period ending in the calendar year that precedes the year in which the cooperative applies for authorization to issue preferred shares for the purposes of this Act in accordance with Chapter V of Schedule C to the Act respecting the sectoral parameters of certain fiscal measures, is to be replaced by a reference to the end of the first fiscal period of the cooperative or legal person, if the Minister is satisfied that, at the end of that first fiscal period, the cooperative or legal person will meet all the conditions applicable to it.

2006, c. 37, s. 3; 2010, c. 25, s. 244; 2012, c. 1, s. 71.

2010-10-27

3. In this Act, “qualified cooperative” means, subject to the second paragraph, a cooperative governed by the Cooperatives Act (chapter C-67.2) that meets the following conditions at the end of the last fiscal period ending in the calendar year that precedes the year of the application for authorization under section 10:

(1)  the cooperative is

(a)  a work cooperative,

(b)  a shareholding workers cooperative,

(c)  a solidarity cooperative that would be a work cooperative but for its supporting members,

(d)  a producers cooperative or a solidarity cooperative that would be a producers cooperative but for its supporting members, so long as at least 90% of the goods or services it provides, including those provided through a partnership or a controlled subsidiary, are provided to persons or partnerships that procure those goods or services for the purpose of earning income from a business,

(d.1)  a solidarity cooperative, with or without supporting members, that consists of worker members and user members, so long as each user member of the cooperative is a producer and at least 90% of the goods or services it provides, including those provided through a partnership or a controlled subsidiary, are provided to persons or partnerships that procure those goods or services for the purpose of earning income from a business, or

(e)  a farm cooperative;

(2)  its central management is in Québec;

(3)  more than 50% of the wages paid to its employees were paid to employees who, within the meaning of the regulations under section 771 of the Taxation Act (chapter I-3), are employees of an establishment situated in Québec;

(4)  in the case of a shareholding workers cooperative, the majority of the assets held by the legal person of which the cooperative is a shareholder are situated in Canada and, in any other case, the majority of the assets held by the cooperative, including those held by a controlled subsidiary, by a partnership of which the cooperative is the majority member or by a trust to which the cooperative has transferred property, are situated in Canada;

(5)  its capitalization rate is less than 60%, except in the case of a work cooperative, a shareholding workers cooperative, a solidarity cooperative that would be a work cooperative but for its supporting members, or a cooperative that has obtained an exemption in accordance with Chapter IV;

(6)  its equity other than securities issued for the purposes of this Act and of the Cooperative Investment Plan adopted under the Act respecting the Ministère du Développement économique, de l’Innovation et de l’Exportation (chapter M-30.01) is equal to at least 80% of that equity on 23 April 1985; and

(7)  the Minister is of the opinion that the cooperative is in compliance with the Cooperatives Act.

If the cooperative described in the first paragraph is a shareholding workers cooperative, the legal person of which the cooperative holds shares must meet the following conditions at the end of the legal person’s last fiscal period ending in the calendar year that precedes the year of the application for authorization under section 10:

(1)  its central management is in Québec; and

(2)  more than 50% of the wages paid to its employees and, where applicable, to the employees of the legal persons with which it is associated, within the meaning of the Taxation Act, were paid to employees who, within the meaning of the regulations under section 771 of that Act, are employees of an establishment situated in Québec.

For the purposes of the first and second paragraphs, in the case of a cooperative or legal person in its first fiscal period, the reference to the end of its last fiscal period ending in the calendar year that precedes the year of the application for authorization under section 10 is to be replaced by a reference to the end of the first fiscal period of the cooperative or legal person, if the Minister is satisfied that, at the end of that first fiscal period, the cooperative or legal person will meet all the conditions applicable to it.

2006, c. 37, s. 3; 2010, c. 25, s. 244.

2006-12-06

3. In this Act, “qualified cooperative” means, subject to the second paragraph, a cooperative governed by the Cooperatives Act (chapter C-67.2) that meets the following conditions at the end of the last fiscal period ending in the calendar year that precedes the year of the application for authorization under section 10:

(1)  the cooperative is

(a)  a work cooperative,

(b)  a shareholding workers cooperative,

(c)  a solidarity cooperative that would be a work cooperative but for its supporting members,

(d)  a producers cooperative or a solidarity cooperative that would be a producers cooperative but for its supporting members, so long as at least 90% of the goods or services it provides, including those provided through a partnership or a controlled subsidiary, are provided to persons or partnerships that procure those goods or services for the purpose of earning income from a business, or

(e)  a farm cooperative;

(2)  its central management is in Québec;

(3)  more than 50% of the wages paid to its employees were paid to employees who, within the meaning of the regulations under section 771 of the Taxation Act (chapter I-3), are employees of an establishment situated in Québec;

(4)  in the case of a shareholding workers cooperative, the majority of the assets held by the legal person of which the cooperative is a shareholder are situated in Canada and, in any other case, the majority of the assets held by the cooperative, including those held by a controlled subsidiary, by a partnership of which the cooperative is the majority member or by a trust to which the cooperative has transferred property, are situated in Canada;

(5)  its capitalization rate is less than 60%, except in the case of a work cooperative, a shareholding workers cooperative or a cooperative that has obtained an exemption in accordance with Chapter IV;

(6)  its equity other than securities issued for the purposes of this Act and of the Cooperative Investment Plan adopted under the Act respecting the Ministère du Développement économique, de l’Innovation et de l’Exportation (chapter M-30.01) is equal to at least 80% of that equity on 23 April 1985; and

(7)  the Minister is of the opinion that the cooperative is in compliance with the Cooperatives Act.

If the cooperative described in the first paragraph is a shareholding workers cooperative, the legal person of which the cooperative holds shares must meet the following conditions at the end of the legal person’s last fiscal period ending in the calendar year that precedes the year of the application for authorization under section 10:

(1)  its central management is in Québec; and

(2)  more than 50% of the wages paid to its employees and, where applicable, to the employees of the legal persons with which it is associated, within the meaning of the Taxation Act, were paid to employees who, within the meaning of the regulations under section 771 of that Act, are employees of an establishment situated in Québec.

For the purposes of the first and second paragraphs, in the case of a cooperative or legal person in its first fiscal period, the reference to the end of its last fiscal period ending in the calendar year that precedes the year of the application for authorization under section 10 is to be replaced by a reference to the end of the first fiscal period of the cooperative or legal person, if the Minister is satisfied that, at the end of that first fiscal period, the cooperative or legal person will meet all the conditions applicable to it.

2006, c. 37, s. 3.