Co-operative Associations Act to be Amended

Legislation was introduced today to update the Co-operative Associations Act. The province has been working with Nova Scotia co-operatives for more than a year to develop changes that will bring the act up-to-date and make it more relevant.

Service Nova Scotia and Municipal Relations Minister Angus MacIsaac introduced the amendments on behalf of Economic Development Minister Gordon Balser.

"Rural communities are attracted to co-operatives because they are owned by the community, where the benefits of profit, employment and ownership are kept in the community," said the minister. "Close to 3,000 Nova Scotians are employed by co-ops, and more than 35,000 hold local shares in them."

Mr. MacIsaac said that last year, provincial co-operatives contributed more than $612 million in sales to Nova Scotia's economy and that their total assets exceed $312 million. "They're an important part of our rural economy, and it's time to bring the legislation up to date," said Mr. MacIsaac.

Provisions pertaining to non-profit co-operatives have been added that would protect members when a co-operative dissolves. Non- profits will be required to distribute any surplus cash or other assets to another non-profit organization when they wind up, after all liabilities have been paid. This will eliminate the potential for individuals to benefit financially from a non- profit co-op becoming a profit-based organization during wind-up.

Under the revised act, beneficiaries of members who die without a will would be eligible to receive up to $2,000 from the deceased person's account, instead of the present $500. Other revisions provide for changes to the reporting requirements of financial information to protect the privacy of individual investors. The specific rules for reporting of securities transactions by co- operatives will be clarified under the Securities Act of Nova Scotia.

Many of the changes proposed have been sought by the co-operative sector for some time.