Co-operative Legislation

 

Co-operative corporations are an important part of Ontario’s economy and serve the needs of their members in communities across the province.   

Ontario's non-financial co-operatives are regulated by the Ontario Co-operative Corporations Act. As of April 1, 2019, the administration and regulation of co-operatives falls under the Financial Securities Regulatory Authority of Ontario (FSRA). The now defunct Financial Services Commission of Ontario (FSCO) administered the Act and registered organizations conducting business as a co-operative under the Act prior to this time. 

The Act came into force in 1974, and has never been subject to a full legislative review. As a result, the legislation has not kept pace with other business statutes in Ontario. It requires modernization to more accurately reflect the current economic climate of co-operatives in Ontario. For this reason, OCA and CCO have been lobbying the Ontario government to review and update the legislation affecting non-financial co-operatives for at least 15 years. In late 2019, we received a commitment from the Province to conduct a full review of the Act, and to update the audit requirements and the 50% Rule requirement! We will be working closely with our government counterparts to see this commitment through to fruition. 

OUR KEY RECOMMENDATION...

Ontario co-operatives require an increase to exemption thresholds for Offering Statements. These thresholds were last reviewed more than 25 years ago and are inadequate for modern co-operatives to raise the required capital required for their businesses.

Read our January 2020 Pre-Budget Submission to the Ministry of Finance to learn more about the recommendations. 

Learn more on the status of our recommendations.