On January 1, 2020 a new Cooperatives Act came into effect.
The modernized Cooperatives Act gives cooperatives more independence and will reduce administrative red tape. It gives cooperatives the ability to issue several classes of shares and integrate technology into their processes. The special needs of housing and worker cooperatives have been incorporated. Provisions also exist to help improve governance.
Existing cooperatives will have 18 months after the new Act comes into force to file with the Director of cooperatives:
- articles of amendment
- notice of registered office and notice of directors
- have their by-laws updated to meet the new criteria outlined in the legislation
- have said by-laws adopted and approved by extraordinary resolution of the members
The Financial Institutions Division is responsible for the regulation and the incorporation of cooperatives in the province, according to the Cooperatives Act of New Brunswick.
Before starting your cooperative, you may want to consult with professional advisors in accounting, business, finance, legal, and other fields. You can also contact the Canada Business Network’s New Brunswick Service Centre which is a joint initiative of the federal and provincial governments. The Centre is a valuable resource for information on registration and other requirements of various federal and provincial departments and agencies.
A cooperative is an organization incorporated by three or more persons, or by one or more cooperatives united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. A cooperative is organized and operated, and carries on business on a cooperative basis. To search for a Cooperative, use the Cooperative Search resource.
About the by-law builder
FCNB’s online by-law builder allows you to create by-laws for your cooperative as required under the Cooperatives Act. It allows you to customize the by-laws to better meet your cooperative’s needs. It is the cooperative’s responsibility to ensure that its by-laws meet its specific needs and are in compliance with the Act.