Coop rules/22 Finances

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Contents

Part 22 -- Finances

Borrowing powers

(Rule 128) The directors may, with the approval of the members, for the purposes of EcoReality Sustainable Land Use and Education Cooperative, on behalf of EcoReality Sustainable Land Use and Education Cooperative,

  1. borrow or raise money in the manner and amount, from the sources, on terms and conditions, and
  2. issue notes, bonds, debentures and other debt securities as the directors consider appropriate.

Limitations on investing

(Rule 129)

  1. Subject to any limitations adopted by EcoReality Sustainable Land Use and Education Cooperative, the directors may invest the funds of EcoReality Sustainable Land Use and Education Cooperative in the manner they consider appropriate.
  2. EcoReality Sustainable Land Use and Education Cooperative must not provide loans on the security of its shares, but
    1. in accordance with #Payment for shares (Rule 23)(4), shares may be loaned to members for the purpose of reaching minimum number of investment shares required for habitation in the village.
  3. EcoReality Sustainable Land Use and Education Cooperative must not raise or borrow or secure the payment of money for a term of longer than three years without prior approval by special resolution.

Auditor

(Rule 130) Subject to and in accordance with The Cooperative Association Act, the directors must appoint the first auditor and EcoReality Sustainable Land Use and Education Cooperative must appoint subsequent auditors, if any. The duties and rights of the auditor are governed by The Cooperative Association Act. In any year, the appointment of auditor may be waived by a special resolution passed by the general membership.

Accounting records

(Rule 131) The directors must cause accounts to be kept in accordance with The Cooperative Association Act.

Financial year

(Rule 132) The financial year of EcoReality Sustainable Land Use and Education Cooperative ends on the date fixed by the directors.

Use of surplus funds

(Rule 133) The directors must apply surplus funds arising from the operation of EcoReality Sustainable Land Use and Education Cooperative in a financial year as follows:

  1. first, to the reserves required by #Reserves (Rule 134);
  2. next, to retire all or a portion of any deficit previously incurred by EcoReality Sustainable Land Use and Education Cooperative, as the directors determine is appropriate;
  3. next, to further reserves as deemed necessary by the directors,
  4. next, to special projects as determined by the directors,
  5. last, to patronage returns or dividends as decided by the directors in accordance with #Investment shares (Rule 21).

Reserves

(Rule 134) The directors must set aside as reserves for meeting contingencies at least 5% of the surplus funds arising from the operations of EcoReality Sustainable Land Use and Education Cooperative in each financial year until those reserves are equal to a percentage of paid up share capital determined by resolution of the members.

(Rule 135) Subject to The Cooperative Association Act and these coop rules, reserves must be available to meet contingencies and until required for that purpose may be employed in any manner the directors consider appropriate.

Patronage returns

(Rule 136) Subject to and in accordance with The Cooperative Association Act and the coop rules in this Part, EcoReality Sustainable Land Use and Education Cooperative may allocate among and credit or pay to the members patronage returns.

(Rule 137) EcoReality Sustainable Land Use and Education Cooperative must not pay any patronage return or dividends if there are reasonable grounds for believing that

  1. EcoReality Sustainable Land Use and Education Cooperative is unable to pay its liabilities as they become due in the ordinary course of business, or
  2. paying the patronage return would
    1. render EcoReality Sustainable Land Use and Education Cooperative unable to pay its liabilities as they become due in the ordinary course of business, or
    2. cause the realizable value of EcoReality Sustainable Land Use and Education Cooperative's assets to be less than its liabilities.

(Rule 138) The directors must report to each annual general meeting the state of EcoReality Sustainable Land Use and Education Cooperative's financial affairs and the amounts, if any, which shall be paid by way of share dividend or patronage return.

(Rule 139) Subject to rules in this Part, EcoReality Sustainable Land Use and Education Cooperative may declare share dividends and patronage returns in accordance with The Cooperative Association Act, but share dividends and patronage returns declared must not exceed the amount reported by the directors pursuant to this rule, and at any rate a share dividend or patronage return must not be paid except out of surplus funds.

(Rule 140) EcoReality Sustainable Land Use and Education Cooperative may apply any dividend or patronage return credited to a member to the unpaid amount on any membership shares held by that member, or to the purchase of additional membership shares, or to pay down investment shares borrowed by that member.

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