Under the Ontario Co-operative Corporations Act, co-operatives have two different forms to choose from when incorporating: with share capital and without share capital. Each structure offers different options and benefits for raising money or carrying on operations. For the most part, this decision will be made based on the purpose of the co-operative and what types of financing are required.
The decisions around share structure and corporate structure can be complex and will depend on having a fairly good idea of what the co-op’s purpose and business plan will be. It may also be advantageous for a group to seek the guidance of an accountant and lawyer familiar with co-ops to assist them with the decision making process and determining an appropriate share structure.
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