Apple blossom lunch, Madoc Township, May 2004.

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Co-operatives must keep careful records regarding their members. Some records relate to new members arriving and other members moving out. This can be complicated if a member leaves without giving notice.

Subsection 114(3), clause ii. of the Co-operative Corporations Act requires that every co-operative have an alphabetical register of all members and all people who have been a member in the last 10 years. This is a good job for a computer, since you need to distinguish current members from past members and remove people who left more than 10 years ago.

Subsection 61(2) of the Co-operative Corporations Act provides that no person may become a member until an application from that person has been approved by the board and the member has complied with the by-laws governing admission of members. This means that there should be an entry in the board minutes approving every new member. The approval can be effective at a future date and can be conditional. For example, the motion approving membership can be effective as of the day that the person has been allocated a unit, signed an occupancy agreement and received keys to the unit.

A new member should never be given keys to a unit until they have complied with all of the procedural requirements. It can be very difficult to get a person to sign their occupancy agreement or pay the member deposit after move-in.

When does a current member become a past member? From a practical standpoint it happens when they move out. Normally, the member gives the co-operative a written notice that sets out the date that they are leaving. Every co-operative should have a checklist relating to move-outs. This will help make sure that inspections are done, keys are retrieved and deposits are refunded (if appropriate). To avoid confusion about the status of a member, the board should approve the change from current member to past member. Board minutes will become a record of the change, and can help ensure that the register is updated.

Sometimes there is no notice from a member. The member may have “skipped” without notice. Or one member may advise the Co-operative that another member has moved out.

In these cases, it is best to have a “hearing” at a board meeting regarding the termination of membership and occupancy rights. The member is advised of the hearing by a special form of notice to appear, which tells the member either that they appear to have abandoned their unit or the Co-operative has been advised that they have moved out. The notice will also warn the member to appear, be represented or submit something in writing if this is not true. The board decision to terminate membership and occupancy rights should then trigger an update in the member register.

Under certain circumstances, the decision may have to be enforced in court, especially if any of the member’s possessions are still in the unit. Legal advice is recommended.