Madam Speaker, I too am pleased to speak of the two additional amendments in the House today, which were made following the adjournment of the deliberations of the Standing Committee on Industry on Bill C-5.
The need for two more technical amendments became apparent just after the committee adjourned its hearings. We would like to put forward these amendments now.
The first relates to section 85 of the bill. The amendment is required to correct the conflict regarding how long directors may be appointed to fill an existing vacancy on a board.
Section 85(1)(b) states that an appointed director may fill a vacancy until the next annual meeting. However, section 85(9) states that the director may serve for the unexpired term of their predecessor.
The amendment resolves the conflict by removing the time period set out in section 85(1)(b). This ensures that the bill is consistent with similar provisions of other federal corporate law statutes.
Permit me to remind the House of the way Bill C-5 was drafted. The bill is the result of an initiative by users, that is, the co-operative sector. It comes from people who know best what it takes to maintain the vitality and dynamism of the co-operative movement.
The co-operatives sector in Canada sought a consensus among its members on their needs in order to survive and prosper in a competitive market. This bill is the outcome of hard work and devotion by the members of the co-operative movement in an effort to modernize legislation.
The bill was well received by all parties at second reading. In addition, it received the general approval of the committee, not only of the witnesses appearing before it but of the members sitting on it.
The bill has three main objectives. The first consists in revitalizing the rules for managing co-operatives. Accordingly, the bill gives co-operatives access to tools other businesses already have. Furthermore, it simplifies the process of incorporation and reduces government intervention to a minimum.
The second objective is to give co-operatives access to new forms of financing. For example, it authorizes them to issue participating stock on the stock exchanges enabling them to borrow on the financial market if they wish to do so.
The third objective is to reinforce the distinct character of co-operatives, by ensuring that only those organizations operating according to co-operative principles may be constituted as co-operatives. The bill also reinforces the control exercised by members and empowers them to decide on the structure of the co-operative.
The new legislation will enable Canadian co-operatives to operate effectively. It will help to stimulate investment, economic growth and job creation in numerous communities throughout Canada.
The co-operatives have been anxiously awaiting this reform. They have done their part. They did all of the ground work themselves. They have clearly pointed out what they wanted in this bill, and worked hammer and tongs to attain that goal.
The work done by the co-operatives has considerably facilitated the process of studying the bill. The effects of this can be seen in the support it has received on second reading and in committee.
The industry committee heard from several witnesses. It heard from two national organizations representing co-operatives, the Canadian Co-operative Association and the Conseil canadien de la coopération.
Further, it heard from specific members of the co-operative sector, the Alberta Wheat Pool and the Manitoba Pool Elevators. Finally, it heard about the cross-country consultations on this initiative with grassroots members of the co-operative sector.
One substantive issue was raised at committee. It concerned the ability of a co-operative to pay out a member who dissents on a proposal for a fundamental change or a change to the articles. Some members of the co-operative sector raised concerns that the right of members to dissent and be paid out could potentially jeopardize the capital base of a co-operative. These concerns were expressed in committee by the Alberta Wheat Pool and the Manitoba Pool Elevators.
In the true spirit of co-operation, a consensus was arrived at within the co-operative sector itself to deal with this issue. An amendment was proposed to allow a co-op to set out in its articles a time period for payout to a dissenting member as long as the time period does not exceed 10 years.
The amendment also ensures that the rights of members are protected by stipulating that any payout made will accumulate interest at rates set out in the regulations. This amendment was passed in committee.
Five other amendments were passed in committee. These were all technical in nature and did not raise any debate.
I wish to commend the hard work done by all committee members from all parties to bring Bill C-5 to fruition.
I will be pleased to address the second amendment in a few minutes.
