Understanding associative life in collective enterprises

Associative life is the beating heart of collective enterprises, whether they are cooperatives or non-profit organizations (NPOs). It encompasses all the activities and interactions among members that contribute to the organization’s vitality and ongoing development. A vibrant, well-structured associative life is essential to ensuring the longevity and success of the enterprise.   What is associative life?  First and foremost, associative life refers to members’ interactions, involvement and participation in the governance of a collective enterprise. It is grounded in the strength of the community, bringing together members, beneficiaries, volunteers, partners and donors. For cooperatives, associative life addresses members’ needs (whether for goods, services, employment or markets) through a usage link, where members are typically users, producers or workers. For commercial NPOs, it aims to meet community needs while generating earned revenue, where the economic link is not necessarily tied to the associative relationship. This associative connection helps build greater solidarity within society, by serving public interest and allowing for civic engagement that focuses on creating a cohesive community.    Participating in associative life  Participation in associative life goes beyond administrative and maintenance tasks. It encompasses a wide range of economic and social contributions to the harmonious operation and development of the community. First, in a cooperative, members must contribute to the capital stock by subscribing to a minimum number of common shares. Additionally, active participation in general meetings, involvement in administration and governance, acceptance of financial decisions, and engagement in social and community activities are essential. Furthermore, taking relevant training allows members to enhance their skills and engage more effectively in the organization. This view of participation highlights the importance of collective engagement and shared decision-making, which are both key elements in the success of any collective enterprise.   Distinguishing between participation and involvement  In a collective enterprise, it’s important to understand the difference between participation and involvement in associative life. Member participation is an essential condition for the success of any collective enterprise. As the cooperative principles remind us, membership in a cooperative is open to anyone willing to accept the responsibilities that come with membership. Likewise, cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Participation is defined as taking part or doing one’s share in a project or task.By participating, a member fulfills the commitments or obligations accepted upon joining. This participation can be driven by several factors: the desire to conform, to please other members or to enjoy a benefit linked to participation. It can also stem from the usage link, or the need for the service provided by the enterprise and a desire to preserve it. Finally, some members participate out of dedication to the cooperative’s mission, as in the case of support members who engage out of personal conviction. Involvement, however, implies a deeper commitment. A person becomes involved not out of obligation, but out of belief in the success of the collective project and its positive impacts on individuals and the community. For an involved person, being a member means endorsing the organization’s values and believing in the validity of its mission. While a collective enterprise can require member participation, it cannot impose their involvement. It must inspire that involvement through meaningful action.   Webinar - Dynamisez votre vie associative (in french) A webinar to help you deepen your understanding of organizational life and discover practical methods for engaging your members. What impacts associative life?  Collective enterprises, such as cooperatives or NPOs, provide individuals with entrepreneurial power that would otherwise be difficult to attain. However, member participation varies; it depends on the size of the organization, its maturity, its sector of activity and the nature of the members’ connection to the enterprise. In small, emerging collective enterprises, members often get involved voluntarily and without compensation to help manage operations. By contrast, in large, established organizations, professional managers and employees handle day-to-day management. Members of a worker cooperative typically participate in most decisions. Conversely, in a consumer cooperative or an NPO, members focus primarily on strategic direction, leaving operational management to executive leadership. Thus, members’ usage link directly shapes their level of decision-making participation. Encouraging participation  In collective enterprises, empowerment gives members the authority and confidence to achieve established goals while staying true to the organization’s core values. This strategy fosters member participation, involvement and engagement in governance and operational management. It relies on enabling tools such as education, leadership, mentorship, organizational structure, communication and self-fulfillment. By fostering empowerment, a collective enterprise creates a virtuous circle: a self-reinforcing dynamic of cause and effect that drives continuous improvement across the entire system. This virtuous circle enhances the organization’s ability to mobilize its members while building social cohesion that benefits the whole community. Driven by member commitment, every incremental improvement yields further gains, contributing to the sustainable and harmonious growth of the collective enterprise Interested in this topic? Learn more, explore our governance and associative life services. Sources   Confédération québécoise des coopératives d’habitation, 2021, Guide pratique de gestion des coopératives d’habitation, participation des membres (member participation).  Confédération québécoise des coopératives d’habitation, 2018, La participation en coopérative d’habitation: Partager l’expérience et mettre à profit les connaissances.  Co-operative Housing Federation of Canada (CHF Canada), 2010, Beyond Participation: Building a Foundation for Real Member Involvement.  Marie Bouchard & Marc Gagnon, 2000, L’habilitation (empowerment) dans les organisations coopératives, Chaire de coopération Desjardins-Guy Bernier.  Benoît Lévesque, 2011, “Vie associative et participation chez Desjardins : anémie démocratique ou démocratie douce?” In Desjardins: Une entreprise et un mouvement? Presses de l’Université du Québec. Project MUSE.  Ministère de l’Économie, de l’Innovation et de l’Énergie du Québec (MEIE), 2022, Tenir à jour le registre d’une coopérative. 

How to identify the potential for a collective takeover?

Are you thinking about selling your business, whether to retire or to start a new venture? Whatever your reason, careful planning is essential for a successful transition. One option that is often overlooked but full of potential is a collective takeover. This approach allows your customers, employees, suppliers or community members to join forces to buy your business, ensuring a bright future for everything you have built. In this article, we look at how to determine if your business has what it takes for a successful collective takeover and a smooth transition.    Finding potential transferees  Traditional routes, like passing the business to family, a management buyout or selling to another owner-operator, are well known. But why limit yourself? Other key players already involved with your business could be the ideal successors through a collective takeover. Here are a few paths to explore:     Your customers: unexpected buyers  Your current customers could be the perfect buyers, especially if your offering is recurring, rare in the region or if competitors charge much higher rates. Furthermore, customers who are loyal to your products or services may have a vested interest in taking the reins to ensure continued access to those goods. Whether it is a grocery store, a hardware shop, a campground or specialized services, Quebec is full of examples of collective takeovers led by customers.   Your suppliers: strategic allies  Suppliers, particularly those with deep business ties to your company, may also be interested in a buyout. This allows them to secure their distribution network and protect their assets.    Your employees: business insiders Besides you, your employees often know the business better than anyone else. Because they are personally invested in their jobs and often show natural leadership, they can be an efficient and logical choice for a succession plan.   Local stakeholders: protecting community impact  Does your business play a major role in the local economy or the social and cultural life of your region? Local players, such as nearby businesses or community organizations, might want to acquire the business to ensure its longevity and growth. Whether it is a tourist attraction, a transport service or a cultural hub, there are many ways for local collaborators to get involved.   A multi-stakeholder approach: the solidarity cooperative  If two or more of the groups mentioned above are interested, a solidarity cooperative could be the perfect fit. In this structure, people with different interests share a common goal: preserving and growing your business.  Evaluating the social dimensions of the business  Traditional business valuations often focus primarily on financial metrics. However, for a collective takeover, it is crucial to consider the social and collective dimensions as well. A business that already incorporates shared governance principles or a social mission is easier to transition into a social economy enterprise. It is important to understand that social economy enterprises conduct economic activities for social purposes, to meet the needs of their members or the community rather than maximizing profits. These can take the form of cooperatives, mutuals or non-profit organizations and follow these specific principles:  Meeting needs: The primary objective is to serve members or the community.  Independence: They operate independently of public bodies.  Democratic governance: Decisions are made democratically by the members.  Economic viability: They strive to be economically viable while fulfilling their social mission.  Distribution of surpluses: The distribution of surpluses is limited, often in the form of patronage dividends.  Dissolution: In the event of dissolution, any remaining assets are transferred to an entity with similar objectives.  These enterprises fulfil a wide range of social missions, including professional integration, the creation of sustainable jobs, local services and environmental preservation. Firmly rooted in their communities, they contribute actively to the socioeconomic vitality of their regions. Determining the transfer strategy  Once potential buyers have been identified, it is time to define the most suitable collective takeover strategy. Three approaches are generally possible:  Internal takeover by employees: This can occur with or without family successors and may be either a partial or total transfer of ownership.  External takeover: Led by external parties such as customers, suppliers or community members.  Mixed takeover: A combination of different types of buyers, such as employees joining forces with external parties.  Next, choose the appropriate legal structure for the takeover. For example:  The solidarity cooperative is ideal for takeovers involving diverse groups, such as workers, customers and partners.  The consumer cooperative is best suited for takeovers where customers become co-owners, ensuring that products and services continue to meet their specific needs.  The non-profit organization (NPO) is recommended for transfers focused on community service and the common good.  Depending on the specific needs of your business and your buyers, other combinations of strategies and legal structures can be considered to ensure a successful and sustainable transition.     Take action Are you considering a collective takeover for your business? Test your potential now with our diagnostic tool to evaluate your business’s readiness for a collective model. This tool will help you analyze the capacity of your buyers, the value of the business, the necessary resources and more. Better yet, contact us for personalized support!  

Why form a provisional committee before launching your cooperative?

Gathering a group to launch a cooperative business is an exciting venture, but it also brings up many questions, especially if you and your team are unfamiliar with the cooperative model. One of your first questions will likely be, Why form a provisional committee? Here are three essential reasons why establishing this committee is a crucial step to ensuring the success of your cooperative project. 1. Ensuring project feasibility through the provisional committee Even before incorporating your cooperative and launching operations, forming a provisional committee is critical. Its primary role? To evaluate project feasibility and build a solid foundation for long-term success. The committee should bring together individuals with skills aligned with the project’s specific vision. Examples: A food cooperative project will benefit greatly from someone with retail experience. An outdoor cooperative will gain from including someone who thoroughly understands the recreation sector. Beyond technical expertise, committee members must foster positive group dynamics. Working collaboratively to find solutions is essential, as you will inevitably encounter challenges throughout the start-up process.  2. Reducing the risk of costly mistakesThe mandate of a provisional committee should never be taken lightly. It demands strong commitment, thorough discussions and key decisions that can have lasting impacts on the cooperative.  Here are a few errors frequently seen when launching a cooperative: Underestimating initial financial requirements Poorly defining members’ roles and responsibilities Failing to establish a clear vision for the cooperative A high-performing provisional committee helps identify these pitfalls early on and prevent them altogether. 3. Finding solutions with the CDRQWondering how to form an effective provisional committee? The CDRQ offers two ways to support you:  Solution 1: Download our white paper (in French only) This document provides practical recommendations based on key insights from our cooperative development specialists.  Solution 2: Contact us. CDRQ specialists can guide you in structuring your committee and offer tailored advice for your specific project. Having supported hundreds of provisional committees, our specialists know what works, and what doesn’t.   In summary: The provisional committee is essential to success Form a provisional committee right at the start of your cooperative project to: evaluate your project’s feasibility reduce common start-up mistakes benefit from expert guidance through the CDRQ Wishing you a successful launch! Have a project in mind? Contact us or register for one of our upcoming webinars to learn more about the cooperative start-up process. At the CDRQ, we are here to propel your collective enterprise forward! 

Non-profit cooperatives

On February 24, 2026, the Quebec government passed Bill 111, which marked a significant modernization of the Cooperatives Act.The new law introduces several key changes, including the recognition of non-profit cooperatives.Here is some information about this new legislation, drawn from frequently asked questions we receive on the subject.How can a cooperative declare as being non-profit? To declare itself non-profit, a cooperative must amend its articles of incorporation and add the following statement: “The cooperative declares itself to be non-profit.” This statement can only be added if the cooperative has also prohibited the allocation of rebates and the payment of interest on shares issued to members. Official forms will eventually be modified by ministerial order, but cooperatives that need to do so can make the amendment right away. The Ministère de l’Économie, de l’Innovation et de l’Énergie (MEIE) does not have the authority to grant recognition of non-profit tax status. Its role is limited to confirming amendments to articles of incorporation, pursuant to the Cooperatives Act. Recognition of tax status falls exclusively under the jurisdiction of tax authorities, who evaluate it based on all the facts and actual activities of the cooperative. It is strongly recommended to consult a legal advisor before amending the articles of incorporation to ensure that the process aligns with the cooperative’s goals, obligations and reality. Can a non-profit cooperative say that it is an NPO? No. Even though a cooperative is operated on a not-for-profit basis, it is not a non-profit organization (NPO) in the legal sense. NPOs and cooperatives are governed by different statutes and present several major distinctions; in particular, the Cooperatives Act is much more specific regarding governance. Further, a cooperative relies on a share and membership system, whereas an NPO does not issue shares. Therefore, being a non-profit cooperative does not mean becoming an NPO. It is thus preferable to use phrasing such as “cooperative operated for non-profit purposes” or “non-profit cooperative.” This better reflects the legal reality of the cooperative. Does the new Act ensure that non-profit cooperatives enjoy the same benefits or treatment as NPOs (permits, calls for projects, grants, etc.)? Not automatically. Whenever a cooperative submits an application—whether for a program, permit, grant or call for projects—it must always verify the eligibility criteria specific to that program. The main objective of the amendment is to prevent cooperatives from being excluded outright solely because of their legal form, that is, simply because they are a cooperative. “Non-profit” status is first and foremost a tax status that provides for income tax exemption. At that level, non-profit cooperatives are treated on an equal footing. However, for permit applications, calls for projects or other initiatives requiring non-profit status, additional criteria may apply, which could mean that certain cooperatives are not eligible. That said, a measure included in the social economy action plan (PAGES) specifically aims to gain recognition for non-profit cooperatives with other government departments. The MEIE will therefore continue its efforts to evolve practices and foster recognition of this model on the same basis as NPOs where relevant.  Does the amendment to the Act allow a solidarity cooperative to amend its articles of incorporation to become an NPO, just as it is possible to convert from an NPO to a cooperative? No. The amendment to the Act contains no provisions allowing a solidarity cooperative or any other type of cooperative to convert into an NPO. An NPO can convert into a cooperative, but the reverse is not permitted under the current legal framework. The sole exception is a very specific situation: namely, when a cooperative is subject to dissolution following a ministerial decree. In this precise context, the cooperative may then submit a continuation plan to the minister with a view to becoming an NPO. Outside of this exceptional case, a cooperative cannot amend its articles of incorporation to become an NPO. Will cooperatives currently recognized as NPOs for tax purposes need to take steps to change their “status”? It is important to clarify that the modernization of the Cooperatives Act did not amend tax legislation. Thus, cooperatives that already enjoy tax recognition as non-profit organizations are under no obligation to amend their status in order to maintain that recognition. They may, however, choose to do so if they wish. Furthermore, even if a cooperative’s articles of incorporation are amended, maintaining NPO tax status is never automatic. Recognition remains at all times at the discretion of tax authorities, who evaluate it based on the facts and actual activities of the cooperative, and not solely on its governing documents.  What could be the impacts on funders of the simultaneous existence of the designations “non-profit cooperative (NPC)” and “collective interest cooperative (CIC)”? While the Act reaffirms that a cooperative never has profit as its ultimate purpose, could the introduction of these two statuses lead to specific expectations, eligibility criteria or requirements on the part of certain funders? “Non-profit” status remains first and foremost a tax status, granted under tax laws rather than under the Cooperatives Act. The introduction and clarification of the concepts of non-profit cooperatives and collective interest cooperatives in the Cooperatives Act aim primarily to improve understanding and recognition of the cooperative model, both for the sector and for external partners. They do not alter the fundamental nature or purposes of cooperatives. These provisions do not, in themselves, create new legal or financial impacts, but rather foster a better understanding of the cooperative framework. Any additional requirements from funders will depend on their own criteria and policies, rather than directly on these statutory designations.  Learn more about the law Amendments to the Cooperatives Act Do you have any questions? If, after reading this post, you have any questions or would like clarification regarding the amendments to the Cooperatives Act, please contact our Legal Services Department.They will take the time to provide a personalized response to your inquiry.

Modernization of the Cooperatives Act: What is changing

On February 24, 2026, the Quebec government assented to Bill 111, marking the most significant modernization of the Cooperatives Act in over 20 years. The majority of the new provisions are already in effect, while others will come into force at a later date by decree. This reform aims to: reaffirm the cooperative identity modernize and strengthen governance introduce certain new features for cooperatives harmonize the Act with other legislative and regulatory frameworks Reaffirming the cooperative identity The revised Act begins with a series of fundamental provisions that clarify and consolidate the legal identity of cooperatives. It does so notably by adding the core characteristics of the cooperative model, providing explicit guidelines regarding capital stock, non-speculation and introducing a legal definition for rebates. Together, these measures aim to dispel ambiguities and clearly reaffirm the non-speculative and collective nature of the cooperative model.  Clearly stating the characteristics of the cooperative The Cooperatives Act now includes a preliminary provision that clearly states that cooperatives are collectively owned, democratically controlled by their members, do not seek profitability as an ultimate goal, are created by and for their members and are firmly rooted in their communities. This provision serves as a benchmark for interpreting the entire Act. By explicitly setting out the fundamental principles that characterize cooperatives, it provides a frame of reference and purpose to guide both the legal analysis of the sections and their practical application.  Non-speculative purpose Further additions to Chapter I of the Act now specify that interest payments on capital stock must be limited and not for purposes of speculation. Above all, a cooperative’s transactions with its members never constitute a means of profit, whether or not rebates or interest is paid. These additions are primarily intended to explicitly reaffirm that a cooperative is not a financial investment vehicle and must not pursue a speculative purpose, unlike corporations. This clarification is important to settle the legal and economic nature of the cooperative model. By embedding these principles in Chapter I of the Act on application and interpretation, the legislature endows them with a foundational scope that can serve as an interpretive guide for the entire Act.  A legal definition of a rebate The rebate is now explicitly defined as a benefit arising from member status and corresponding to a refund of surplus earnings or a price adjustment, and not a profit. By providing an explicit legal definition of a rebate, the Act avoids misinterpretations that could equate it with a dividend or a profit. By specifying that a rebate derives from member status and not from holding capital, the provision reaffirms that the economic benefit is tied to using the cooperative and participating in its business activities rather than to a financial investment.  Frequently asked questions – Rebate – Is a member discount in a housing co-op considered a rebate? No, a member discount in a housing co-op is a “member benefit.” This concept is not defined in the Act, but it is part of the business model. A member discount is a reduced price applied immediately (reduced price at checkout, reduction on monthly rent) and is not tied to annual surpluses. Rebates are decided after the end of the financial year and distributed based on business volume and in proportion to transactions conducted. In the case of cooperatives that issue rebates at purchase, particularly through member discounts, does the discount disappear if the general reserve is negative? No, a member discount is not a rebate. The new rule prohibiting the payment of rebates if the general reserve is negative has no impact on discounts offered to members throughout the year.  New provisions introduced in the Act The modernization of the Act is not limited to clarifying existing principles; it also introduces several foundational new features. These notably affect the recognition of non-profit cooperatives, the governance framework for collective interest cooperatives and the adaptation of certain rules depending on the type of cooperative. These additions reflect a desire to better capture the diversity of practices and missions observed in practice.  Non-profit cooperatives  The Act now recognizes the ability for a cooperative that prohibits, in its articles, any rebate and any interest on preferred shares issued to members, to declare itself as a non-profit entity. This is a clarification aimed at formalizing an existing practice. Many cooperatives already operate with non-profit tax status, but they occasionally encountered obstacles getting that status recognized. This recognition will hopefully make it easier for these cooperatives to qualify for various programs.   Learn more about these types of cooperatives  Collective interest cooperatives The Act now allows a cooperative to be operated in the interest of a collective expressly defined in its articles. This legal recognition confirms a reality that is already well established in practice. As an example, the health cooperative model has proven its value and demonstrated its relevance in recent years. However, due to health insurance regulations, these cooperatives cannot prioritize their services for their members and, as a result, could never meet the operational threshold required by the Act. Until now, these cooperatives often struggled to reach the threshold of 50% of business conducted with their members. By introducing this option, the Act takes into account their mission and operating model. Moving forward, collective interest cooperatives that do not reach this threshold will simply need to explain the reasons in their annual report. It is important to clarify that non-profit cooperatives and collective interest cooperatives are not new categories but rather attributes that a cooperative can adopt. The patronage relationship with members remains a fundamental element of their operation. Furthermore, existing cooperatives that wish to adopt these attributes may need to amend their articles of incorporation.  Learn more about these types of cooperatives  Other interesting new provisions by cooperative type Among the other new provisions introduced, the Act: provides tailored measures for different types of cooperatives to facilitate their operation and management allows consumer cooperatives to create a “family” member category, better suited to their reality, and to delegate member admission powers (with the exception of housing cooperatives) relaxes the requirements for forming producer cooperatives by allowing them to be established with just three founders instead of five introduces a reserve for future rebates to offer an additional financial management tool, allowing surpluses to be allocated to a reserve with a view to paying rebates at a later date and spreading payments over several financial years.  Frequently asked questions – Family member – Does the “Family” member category also apply to housing cooperatives? Yes, however, this category does not apply automatically. For a housing cooperative to provide for a “Family” member category, it must be explicitly set out in its by-laws. An amendment to the by-laws is therefore required if the cooperative wishes to incorporate it. – Is the “Family” member category also possible in a solidarity cooperative that includes user-consumer members? Yes.  Strengthening governance The reform also brings significant changes to governance, both in terms of obligations and the tools made available to cooperatives. It introduces new requirements for accountability, transparency and member participation, while offering organizations greater flexibility to adapt their internal rules and prevent or manage disputes.   Frequently asked questions – Notice of a meeting Do the provisions concerning resolutions also apply to notices of a meeting for board of directors meetings? No, section 123 of the Act applies only to general meetings.  New annual obligations The Act also introduces new annual obligations aimed at strengthening transparency and member participation. Cooperatives must now include in their annual report a description of cooperative training initiatives, make certain information regarding shares accessible to their members and allow two members to call the annual meeting when the board of directors fails to do so. At the same time, the Act grants cooperatives greater self-regulatory capacity by offering them increased flexibility, notably to change their head office address by by-law, limit the number of terms for directors, spread rebates over several financial years and create new financial reserves.  Obligation to adopt a mediation by-law The Act introduces an obligation for all cooperatives to adopt a mediation by-law in order to encourage internal dispute resolution in a structured and constructive manner. This obligation had already been in place since 2025 for housing cooperatives, but it now applies to all cooperatives. Existing cooperatives have a 12-month grace period following the assent of the Act (until February 2027) to comply with this requirement, failing which penal sanctions should be expected. This new provision aims to promote a culture of dialogue, conflict prevention and accountability within cooperatives, while reducing reliance on judicial proceedings, which are often costly and adversarial. It thus helps protect member cohesion, preserve democratic governance and strengthen the sustainability of cooperative organizations.  Frequently asked questions – Mediation Do we need to fill out a form for the mediation by-law, or is it enough to simply adopt it? There is no form to fill out. The cooperative must formally adopt a mediation by-law. The CDRQ will make a template mediation by-law available to its members very shortly. Cooperatives will be able to adapt it to their needs. Does the obligation to adopt a mediation by-law also apply to federations? Yes, this obligation also applies to federations, pursuant to section 227 of the Act.   Frequently asked questions – Training Can community education and representation activities be considered “training”? Previously, the Act imposed a general obligation to “provide training.” This obligation is now explicitly stated in the Act, which clarifies its existence without detailing its scope. Since this provision is very recent, it is still too early to know how it will be interpreted or applied by the Ministère de l’Économie, de l’Innovation et de l’Énergie (MEIE). Administrative guidelines or clarifications may be issued at a later date. For the time being, there are no official guidelines confirming whether community education or representation activities will be formally recognized as training within the meaning of the Act.  Frequently asked questions – Shares Must share information be included in the annual report, made public or made accessible to non-members? How should the cooperative go about this? It is up to each cooperative to determine how it makes this information available. However, new section 49.5 specifies that information regarding shares must be accessible at a “location” designated by the cooperative. Legally, the concept of location is broadly interpreted. It can be a physical place (for example, the head office) or a digital space, such as an electronic link. What is meant by “information relating to shares”? Does this apply only to preferred shares? This obligation applies to all shares issued by the cooperative, namely common shares and preferred shares. New section 49.5 provides that the cooperative must, once a year, communicate this information to all shareholders or make it available at a location it designates. The information to be provided includes, in particular, the classes of shares outstanding at the end of the financial year, the total value of each class or series of shares, the privileges, rights and restrictions attached to each class of preferred shares, including redemption, repayment or transfer conditions, the amount of repayment requests received for each class of shares and an indication as to whether third-party authorization is required prior to any redemption of capital stock. It must also state the redemption and repayment policy for preferred shares and the repayment plan for those shares, where applicable. With respect to members, this obligation can be fulfilled by attaching this information to the notice of annual general meeting as an explanatory document.  Harmonization and legislative updates The reform also includes various harmonization and legislative updating measures aimed at modernizing the legal framework for cooperatives and strengthening its coherence. In particular, it provides for an update of penal provisions, as well as a comprehensive winding-up regime, offering a clearer and more secure framework in the event of a cessation of business. The Act also clarifies the scope of limited liability for shareholders, thereby contributing to a better understanding of the associated risks. Finally, certain measures, such as the simplification of rules applicable to cooperative mergers, will enter into force at a later date by decree, allowing for a gradual and tailored implementation. What’s next? The next steps of the reform will consist essentially of operational and administrative adjustments. The entire official text of the Act will be updated and made accessible on LégisQuébec in the coming weeks. At the same time, administrative forms will be gradually adapted by the MEIE to reflect the new provisions. An amended regulation pursuant to the Act is also expected in 2026, hopefully to raise the threshold for producing financial statements without mandatory recourse to a CPA to $500,000 for certain cooperatives. Overall, Bill 111 marks a major turning point for the Quebec cooperative movement. It modernizes the legal framework, making it more flexible and, above all, better adapted to current realities while strongly reaffirming the foundations of the cooperative model. The reform clearly confirms that a cooperative is not an investment vehicle for speculative purposes, but a collective tool serving its members, their usage and their community, thereby strengthening its identity, credibility and long-term viability.  Do you have any questions? If, after reading this post, you have questions or would like clarification regarding the amendments to the *Cooperatives Act*, we invite you to contact our Legal Services Department.They will take the time to provide a personalized response to your inquiry.

Understanding the Different Types of Cooperatives

The cooperative model is flexible. It can be adapted to group size, business environment and economic sector, among other criteria. Most importantly, it is conducive to developing businesses capable of meeting a variety of needs. Here is a brief description that will help you understand the different types of cooperatives, based on their economic goals. The five types of cooperatives In Quebec, cooperative businesses can take five distinct forms, regardless of their field of activity or their sector. The type of co-op typically depends on the needs of its core members. The types are: Consumer cooperative Producers cooperative Worker cooperative Worker shareholder cooperative Solidarity cooperative Are you thinking of going into business as a cooperative? Great! Now, you just have to decide which type suits you best. CONSUMER COOPERATIVE The primary goal of this type of cooperative is to provide members with goods and services for their personal use. You can find these cooperatives in a wide range of sectors, including food, housing, education, cable distribution, funeral services and leisure. In short, this type is appealing to customers who want to have their say in defining services or products. Since members are involved in decision-making, they can be sure that the business will be attentive to their needs. A consumer cooperative also offers several advantages: Providing access to and savings on locally sourced products or services Limiting members’ financial responsibility to the capital contributed to the cooperative Offering collective ownership, which often ensures the business’s longevity Redistributing surpluses to members in proportion to their use of the cooperative’s services For example, have you heard of the Fédération des coop d’alimentation du Québec? This network brings together more than 75 consumer cooperatives that operate grocery stores under different banners or as independent stores. Similarly, Coopsco includes nearly 60 cooperatives running around 200 sales points in schools across Quebec and Ontario. PRODUCER COOPERATIVE The aim of a producer cooperative is to provide its members with the goods and services for the exercise of their profession or the operation of their business. Members benefit economically by obtaining what they need from the cooperative. This type of cooperative is common in industries such as taxi services, agriculture and business services. It is particularly advantageous for organizations or self-employed workers who want to build a network where unity is strength. The cooperative becomes an extension of the individual company, which is maximized through the collective of producers. Other benefits include: Increasing profit margins Reducing costs Leveraging a structure that combines profitability with a social mission Providing access to tax incentives that promote capitalization Have you ever heard of Citadelle? This Quebec-based producer cooperative promotes and markets maple, honey and cranberry products. The cooperative offers services for collection, storage, marketing, international exportation and more. WORKER COOPERATIVE Providing employment for its members is at the core of this type of cooperative. Members control all activities, acting as both owners and employees. This model can be found in a variety of sectors, including forestry and wood processing, business services, information technology, microbreweries and ambulance services. By participating in the management of the company, workers have the opportunity to develop their business skills. Research shows that worker cooperatives are as productive as their capitalist counterparts and that members enjoy a high quality of work life. Other benefits include: Reducing sources of cultural, political and economic inequalities in the workplace Finding or retaining decent employment Being considered on equal footing within the business Prioritizing people, not capital, in business decisions Reducing inequality in wages and surplus distribution For example, La Barberie became Quebec’s first worker cooperative microbrewery in 1997. WORKER SHAREHOLDER COOPERATIVE In this type of cooperative, worker shareholders hold shares in the business that provides work for its members. In short, this investment allows employees to take an active part in developing the business. This type of cooperative can be found in a variety of sectors, including business succession planning, manufacturing, IT, transportation, new technologies and multimedia. By giving members the opportunity to be shareholders, there is a natural incentive to maintain and improve the organization. This type of cooperative also provides these benefits: Closely collaborating with management Getting people involved in achieving business objectives and proposing new ideas Ensuring a pathway for business succession Boosting workforce retention Improving organization capitalization For example, Robotiq, a global network of robotics experts based in Saint-Nicolas, Quebec, pursues collective success, inviting all employees to join the cooperative, which holds shares in the business capital. SOLIDARITY COOPERATIVE In a solidarity cooperative, various members join forces to achieve their shared goals. This type of cooperative can include up to three distinct types of members: Users of products or services Workers employed by the cooperative Individuals or companies interested in supporting the cooperative’s mission, known as support members In a solidarity cooperative, workers, users and any other individual or company interested in the organization’s goals can collaborate to fulfil their needs and aspirations. These cooperatives are commonly found in sectors like home services, the environment, sustainable development, tourism, catering, childcare and local or neighbourhood services. Other benefits include: Effectively bringing together people who care about the same cause Getting people involved in achieving business objectives and proposing new ideas Ensuring a pathway for business succession Boosting workforce retention Improving organization capitalization For example, Vallée Bras-du-Nord is a solidarity cooperative that brings together employees (worker members), tourism service providers (user members) and landowners (support members) to ensure consensual, sustainable management and high-quality development of local tourism infrastructure.  Which type of cooperative is right for you? Quebec has roughly 3,000 active cooperatives and mutual societies, together comprising 8.8 million producers, consumers and workers. Thanks to the pooling of their members’ resources and expertise, cooperatives have a 44% higher survival rate than other business models.  Did you know that the CDRQ can help you with your start-up? Call us

5 coop outings to add to your holiday schedule

Envie d’ajouter une touche d’originalité à votre temps des Fêtes ? Pourquoi ne pas découvrir des lieux uniques et des expériences enrichissantes, tout en soutenant des coopératives québécoises ? Spectacles, escapades, magasinage ou bières artisanales : voici quelques suggestions pour des sorties des Fêtes mémorables.   🎭 Voir un spectacle au Café culturel de la Chasse-Galerie Région : Lavaltrie, Lanaudière Installée dans la charmante église St-Antoine à Lavaltrie, cette coopérative de solidarité est un véritable joyau culturel. Avec sa programmation éclectique, elle accueille des artistes tels qu’Aliocha Schneider, Kaïn ou encore le groupe Zouz. Envie d’une soirée plus calme ? Les mardis sont consacrés au cinéma, parfait pour les cinéphiles. Que ce soit pour un film, un spectacle ou simplement un bon café, ce lieu intime et chaleureux est idéal pour multiplier les sorties des Fêtes. Astuce cadeau : réservez des billets à offrir pour un spectacle sous le sapin ! 👉 Découvrez la programmation ici.   🛍️ Magasiner dans le Quartier du Petit Champlain Région : Québec, Capitale-Nationale Saviez-vous que le célèbre Quartier du Petit Champlain est géré par une coopérative regroupant 27 immeubles historiques et 45 commerces ? Ce site enchanteur, décoré de mille lumières pour les Fêtes, est l’endroit rêvé pour une promenade romantique ou une séance de magasinage unique. Flânez dans ses ruelles féériques, découvrez des artisans locaux et profitez d’une ambiance magique qui plaira à toute la famille. Petit conseil : réservez plusieurs visites, il y a tant à voir et à acheter !   🏨 Une escapade inoubliable avec le Réseau Ôrigine Artisans Hôteliers Région : Multiples Imaginez-vous dans une auberge pittoresque en pleine nature ou dans un hôtel charmant au cœur d’une ville animée, tous membres d’un réseau coopératif. Avec 35 établissements répartis dans 15 régions du Québec, Ôrigine artisans hôteliers propose des expériences variées, parfaites pour un moment de détente bien mérité. C’est peut-être les parfaites sorties des Fêtes que vous attendiez ? Idée cadeau : offrez une nuitée ou un forfait bien-être à vos proches, ou faites-vous plaisir ! 👉 Explorez les hébergements disponibles.   ☕ Déguster dans un café coopératif Région : Multiples Les cafés et bistrots coopératifs du Québec sont des lieux où convivialité et délices vont de pair. Que vous souhaitiez déguster un bon café, partager une bouchée avec des ami·e·s ou simplement vous imprégner d’une ambiance chaleureuse, ces adresses sont à découvrir absolument. Quelques suggestions : Coop du Grand-Bois à St-Étienne-de-Bolton  Café Cambio à Chicoutimi Mousse Café à Baie-Saint-Paul Et vous, connaissez-vous d’autres cafés coopératifs ?   🍺 Partager une bière artisanale dans une microbrasserie coopérative Région : Multiples Rien de tel qu’une bonne bière locale pour célébrer les Fêtes avec des ami·e·s. Et pourquoi ne pas opter pour une microbrasserie qui valorise le modèle coopératif ? Ces brasseries québécoises allient saveurs uniques et valeurs collectives : La Barberie (Québec) À La Fût (St-Tite) Flore Sauvage (Shawinigan) Pie Braque (Jonquière) La Chasse Pinte (Anse-St-Jean) La Grange Pardue (Ham-Nord) Les Sans-Taverne (Montréal) La Chope Angus (Montréal) Avez-vous un coup de cœur parmi ces brasseries ou d’autres à suggérer ?   Offrez ou profitez des Fêtes autrement ! Que ce soit pour une sortie culturelle, un repas savoureux ou une escapade relaxante, les coopératives québécoises vous offrent des options originales et mémorables. En plus de vivre des expériences uniques, vous soutenez des initiatives locales et collectives. Prêt·e à explorer ? Bonnes découvertes et joyeuses Fêtes !

Solidarity Cooperatives: Definition, Operation and Advantages

Do you have a project with an economic and social vocation? The cooperative model marries democracy and efficiency, equity and competitiveness. The solidarity cooperative can be an appealing legal framework for a business venture that seeks to involve different types of members who want to take part in decision-making and become partners.What is a solidarity cooperative?Introduced to Quebec in 1997, the solidarity cooperative is a collective enterprise that unites different types of members: users, workers and support members. Their goal? To be active decision-makers and partners.A solidarity cooperative has the following categories of members:User members: Individuals or companies who use the cooperative’s services to obtain goods or servicesWorker members: Individuals employed by the cooperativeSupport members: Individuals or companies with an economic, social or cultural interest in the cooperative, but who do not directly use its servicesDid you know that there are now more than 500 solidarity cooperatives registered in Quebec?They can be found in a wide range of sectors, including home services, professional services, tourism, leisure, childcare, arts and culture, the environment and local services.For example, La Chope Angus was founded in 2019 as a solidarity cooperative. Since June 2022, it has operated a craft brewery of the same name in Montréal’s Technopôle Angus eco-district.Land management by a solidarity cooperativeOverseen by a solidarity cooperative, participatory land management is a valuable tool for protecting land and fostering socioeconomic growth, particularly in remote areas. Two emblematic examples of this model are the Vallée Bras-du-Nord and the Arrière-Pays cooperatives.Located in Saint-Raymond-de-Portneuf, Vallée Bras-du-Nord is a solidarity cooperative in which employees, tourism service providers and landowners come together to develop sustainable and high-quality local tourism infrastructure. This pioneering cooperative in the Capitale-Nationale region has stood out for almost two decades thanks to its participative land management approach that involves a variety of players, such as tourism businesses, farmers and forestry workers. What’s more, the cooperative fosters social and professional integration by employing youth with troubled backgrounds for the annual maintenance of its 100 km of trails. Students in the outdoor education stream at Louis-Jobin school also benefit from the co-op’s facilities—an example of its positive impact on the local community.The Arrière-Pays cooperative in the Témiscamingue region adopted an ambition vision from its very first year of operations. This co-op gathers together players in adventure tourism, innovative organic farming and renewable energies to feed the vitality of this remote region. Its wide range of services include hiking, dogsledding, canoe-camping equipment rental and lodging. The cooperative also emphasizes the synergy between people and nature by offering safe, environmentally friendly and innovative experiences. How the solidarity cooperative worksWe have seen that there are three types of members in this type of cooperative : user members (who use the cooperative’s services or products), worker members (who are employed by the cooperative) and support members (who share the cooperative’s objectives and provide support without using the services or working directly in the cooperative).Each member category has a role and a voice in the governance of the cooperative and has a threefold participation:Participating economicallyMembers contribute equitably to the cooperative’s capital. The amount required to become a member varies according to members’ needs and financial capacity, thus encouragingwide-reaching economic participation.Sharing of powerRegardless of the number of shares held or the volume of business done with the cooperative, each member may cast one vote, in keeping with the democratic “one member, one vote”principle. All members may be elected to the board of directors, thus giving everyone a chance to participate meaningfully in governance.Benefiting from surplusesSurpluses are allocated to the reserve to strengthen the cooperative’s financial situation or to be used for development. Members (other than support members) may decide to share partof the surplus as dividends.In short, this model provides a participative and democratic framework to meet its members’ social, economic and cultural needs. Members are actively involved in management,reinforcing their sense of belonging and collective responsibility. The advantages of the solidarity cooperativeSolidarity cooperatives offer their members many advantages :Democracy and a sense of belonging Members exercise democratic power and develop a sense of belonging, thanks to the principles of solidarity, sharing and equity. Each member has a voice in important decisions, and this strengthens cohesion and commitment to the cooperative’s common goals.Profitability and a social mission Combining economic profitability and a social mission, the structure has the flexibility to adapt to members’ needs. This model not only generates income, it also creates local jobsand provides the community with essential services, as the Vallée Bras-du-Nord and Arrière-Pays cooperatives have shown.Economic benefitsMembers of solidarity cooperatives benefit from tax measures that encourage capitalization, limit financial liability and offer the possibility of sharing surpluses among worker anduser members. This redistribution of surplus earnings strengthens co-op members’ commitment and ensures profits are shared fairly. In doing so, it promotes the cooperative’s financialstability and longevity. ConclusionIn short, solidarity cooperatives provide a framework that is conducive to projects with strong economic and social impacts. By combining democracy, equity and competitiveness, theyhelp create sustainable, resilient businesses rooted in their communities. For those looking to get involved in a collective, participatory initiative, the solidarity cooperative is a highly attractive legal and operational option.In conclusion, this post is part of a series exploring the five types of cooperatives. Our aim is to explain the specific features and advantages of each cooperative model, be it solidarity cooperatives orWorker cooperativesConsumer cooperativesWorker shareholders cooperatives Producers cooperativesIn exploring this series, you’ll discover the many facets of these organizations as well as their positive impact on communities and the economy as a whole. If you’d like to learn moreabout the other types of cooperatives, check out the corresponding posts ! Want to start a project? If you have any questions or would like further clarification after reading this post, please contact a member of our startup team.They will take the time to provide a personalized response to your inquiry.

Consumer Cooperatives: Definition, Operation and Advantages

Do you have a project with an economic and social vocation? The cooperative model marries democracy and efficiency, equity and competitiveness. As such, the consumercooperative can be a beneficial legal framework for a network of customers who want a say in the services or products they buy. What is a consumer cooperative?A consumer cooperative can be defined as a business whose main purpose is to provide goods and services to its members for their personal use. This type of cooperative is also a solution for revitalizing communities that want to make services available locally. These co-ops can be found in a variety of sectors, including food, housing, school goods and services, cable TV and funeral services.Today, there are more than 1,500 consumer cooperatives in operation in Quebec. They act as a shield against inflation, since their commitment not to pursue profit at any cost means they guarantee competitive prices. Found across the province, these cooperatives are especially successful outside major cities to maintain essential local services. Let’s take the exampleof a village grocery or hardware store. Have you heard of Ici Coop? This network is a federation of over 75 consumer cooperatives that operate grocery stores under various banners or as independent businesses. COOPSCO: Snapshot of a consumer cooperative networkA well-known consumer cooperative is the COOPSCO network of school-based cooperatives. They mainly sell school supplies, books, IT equipment and other products for students. COOPSCO members are generally the students enrolled in participating educational institutions, such as CEGEPs and universities. Not only do these cooperatives offer school products and services at competitive prices, they also play an active role in student life by organizing events and activities. In short, COOPSCO is an example of a consumer cooperative that meets the needs of a specific demographic group while implementing the cooperative principles of democratic participation and collective benefits. Housing cooperatives : A pillar of consumer cooperativesIn Quebec, housing cooperatives are an interesting example of consumer cooperatives. These co-ops are crucial to protecting significant real estate assets from speculation, which is particularly important in the current housing shortage. Since the 1970s, over 1,000 housing cooperatives have been launched in Quebec, mainly in the form of continuing, non-ownership cooperatives. This structure fosters access to quality housing while also allowing members to be decision-makers in regard to their living environment. How the consumer cooperative worksThe members of this type of co-op are users who come together to acquire products or services at a lower cost or better quality. They share needs and interests. Since they are collective owners of the organization, they must have access to the services the cooperative offers. It should be noted that the legislation on cooperatives stipulates that a minimum of five people is required to form this type of collective enterprise.The consumer cooperative is also characterized by threefold member participation:Participating economicallyMembers contribute equitably to the cooperative’s capital. Membership fees vary according to individual needs and financial capacities.Sharing powerThe one member, one vote rule specific to the cooperative model applies regardless of the number of shares held by a member or the volume of business they do with the cooperative. In addition, positions on the board of directors are open to all members, offering a meaningful and equal opportunity to take part in co-op governance.Benefiting from surplusesSurpluses are allocated to the cooperative’s reserve, either to consolidate its financial situation or to be used for development. Members can also decide to redistribute some surplus earnings in the form of patronage dividends.So, what really distinguishes consumer cooperatives from private companies in the same business sector? Most important is the value received by the owners. A private business owner generally seeks to maximize the return on their capital investment. Members of a consumer co-op, however, contribute capital to benefit from goods and services that meettheir needs at a better price-quality ratio. The advantages of the consumer cooperativeConsumer cooperatives offer their members many advantages:Economies of scaleBy pooling purchases, consumer cooperatives allow their members to benefit from economies of scale. Through these bulk buys, they can obtain reduced prices on products and services, and that translates into savings for members.Quality and choiceConsumer cooperatives offer their members a choice and a quality of products or services that is centred on members’ needs and preferences.Democratic participationEach member of a consumer cooperative has an equal voice in decision-making. Members also take part in general meetings and have the right to vote on important cooperative matters.Fair distribution of surplus earningsConsumer cooperatives redistribute surpluses to their members in the form of discounts, dividends or other economic benefits. This fair redistribution of profits strengthens the member–cooperative bond.Limited liabilityThe liability of members is limited to the amount of their investment in the co-op. In other words, members are not personally liable for the cooperative’s debts or obligations beyond this amount.Social impactConsumer cooperatives often have a strong social impact in their communities by promoting the local economy, creating sustainable jobs and supporting ethical business practices.In short, consumer cooperatives offer an economic and social alternative focused on meeting members’ needs, democratic participation, financial responsibility and positive impact on the community. In conclusion, this post is part of a series exploring the five types of cooperatives. Our aim is to explain the specific features and advantages of each cooperative model, be it consumer cooperatives orWorker cooperativesSolidarity cooperativesWorker shareholder cooperatives Producers cooperatives In exploring this series, you’ll discover the many facets of these organizations as well as their positive impact on communities and the economy as a whole. If you’d like to learn more about the other types of cooperatives, check out the corresponding posts! Want to start a project ? If you have any questions or would like further clarification after reading this post, please contact a member of our startup team.They will take the time to provide a personalized response to your inquiry.

Producers Cooperative: Definition, Operation and Advantages

Do you have a project with an economic and social vocation? The cooperative formula marries democracy and efficiency, equity and competitiveness.The producers cooperative may be an appealing legal framework if you want to build a strong and unified network. What is a producers cooperative?Producers cooperatives bring together individuals and/or legal entities who benefit by obtaining from their cooperative the goods and services they need to exercise their profession or operate their business. The aim of this kind of co-op is first and foremost to create a shared structure, to purchase equipment and to process, distribute or sellproducts.The members of this type of organization can therefore be service providers (e.g. cab drivers) and producers of goods (e.g. farmers). This business model is effective in areas as varied as agriculture, agri-food, group purchasing, taxi services, the use of agricultural equipment, professional services and more.Have you ever heard of Citadelle? This Quebec-based producers cooperative promotes and markets maple, honey and cranberry products. It carries out collection, storage, marketing and worldwide export activities. Examples of producers cooperativesProducers cooperatives play an essential role in various sectors in Quebec by pooling services and facilitating the marketing of their members’ products. For example, theRegard-Action cooperative brings together opticians and optometrists across Quebec. This producers co-op not only pools purchasing, it also offers its members a variety of services,thus reinforcing solidarity and efficiency in the profession. Another notable example is the Montréal-based craft cooperativeL’Empreinte, which recently celebrated its fiftieth year of operation. This co-op provides craftspeople with a venue to sell their work. Its boutique in Old Montréal and an online catalogue facilitate its artist members’ access to a broader market.As a final example, La Guilde du jeu vidéo du Québec perfectly illustrates the advantages of this business model. This producers co-op brings together independent video-game studios, enabling them to share services and strengthen their competitiveness in a rapidly expanding market.In short, these examples demonstrate the scope and diversity of producers cooperatives that contribute to economic growth and innovation in their sectors. Agropur: Snapshot of a producers cooperativeAgropur perfectly exemplifies the producers cooperative concept. Collectively owned by 3,000 dairy farmers who sought to add value to their operations, this cooperative is widely known for its success in Quebec. As North America’s leading dairy-processing cooperative, Agropur has garnered an enviable position in the food industry and has become one of the world’s leading players. This remarkable rise testifies to the strength and collective vision of producers cooperatives. Les Libraires: A producers cooperativeLes Libraires is an exemplary model of collaboration in the bookselling industry. The Librairies indépendantes du Québec cooperative gathers together more than 120 independent bookstores in Quebec, the Maritimes, Ontario and Manitoba under the Les Libraires banner. The cooperative’s underlying mission draws its strength from proximity, diversity and service. As independent entities with no more than five outlets each, the member bookstores are free of the structures of commercial chains and therefore each able to cultivate their own identity. These members are committed to books, readers and a dynamic literary community.Furthermore, its members joined forces to overcome the challenges of the digital age. By sharing production resources, such as promotional efforts and marketing costs, they carved out a strategic position in the online market, notably through their common platform, leslibraires.ca. This initiative is much more than a website: it’s a collective response to competition from the online retail giants. By pooling the development and maintenance costs of a digital platform, members benefit from cutting-edge technology without incurring prohibitive costs for their individual businesses. By joining forces, Les Libraires members have demonstrated that cooperation is an effective weapon against the industry’s behemoths, while also preserving the very essence of independent bookshops. How a producers cooperative worksIn this type of organization, members share the production resources they require for their professional activities. Practically speaking, this can mean pooling or sharing rental space, promotional efforts, marketing expenses, supply agreements and much more. The Cooperatives Act stipulates that a minimum of five founders (individuals, corporations or other forms) is required to create and legally incorporate a cooperative.The producers cooperative is also characterized by threefold member participation: Participating economically Members contribute equitably to the cooperative’s capital. Membership fees vary according to individual needs and financial capacities. Sharing power The “one member, one vote” rule specific to the cooperative model applies regardless of the number of shares held by a member or the volume of business they do with the cooperative. In addition, positions on the board of directors are open to all members, offering a meaningful and equal opportunity to take part in co-op governance. Benefiting from surpluses Surpluses are allocated to the cooperative’s reserve, either to consolidate its financial situation or to be used for development. Members can also decide to redistribute some surplus earnings in the form of patronage dividends. The advantages of the producers cooperativeProducers cooperatives offer their members many advantages:1 – Increasing profit marginsBy joining forces in a cooperative, producers can leverage greater negotiation power. This strengthened position can lead to market conditions that are more advantageous, often translating into increased profit margins for each member.2 – Reducing costsBy sharing resources and operating costs, such as facility rentals, marketing expenses and administrative fees, co-op members can reduce their individual operating expenses. Sharing expenses optimizes each member’s economic efficiency.3 – Leveraging a structure that combines profitability with a social missionProducers cooperatives are often formed with a twofold aim. They are intended to generate profits and to foster collective well-being.4 – Providing access to tax incentives that promote capitalizationCooperatives enjoy tax incentives intended to support their creation and development. Taking the form of federal and/or provincial tax deductions, these incentives strengthencooperatives’ ability to capitalize and invest in their future growth. By choosing to join a producers cooperative, members maximize the impact of their own business. The cooperative thus becomes a natural extension of the individual company, offering an efficient, mutually supportive network to reach shared goals. In short, producers cooperatives are an organizational structure in which people and companies come together to reap common benefits. By purchasing the goods and services theyneed for their businesses from the cooperative, members can reduce their costs and increase their profit margins. These members also participate in a structure that combines economic profitability with a social mission. Explore the five types of co-op In conclusion, this post is part of a series exploring the five types of cooperatives. Our aim is to explain the specific features and advantages of each cooperative model, be it producers cooperatives orIn exploring this series, you’ll discover the many facets of these organizations as well as their positive impact on communities and the economy as a whole. If you’d like to learn moreabout the other types of cooperatives, check out the corresponding posts!If you have a project, contact us. We’ll be please to help you!

Evan Murray - The new General Manager of the CDRQ

The CDRQ is pleased to announce the appointment of Mr. Evan Murray to the position of General Manager. This choice is based on his deep commitment to cooperative values and his dedication, for more than 10 years, to the advancement of Quebec collective enterprises.Evan Murray The appointment of Mr. Evan Murray to the position of general director is the result of a commitment of more than 10 years at the heart of the CDRQ. Initially a cooperative development advisor, he quickly rose to the position of director of our offices in Abitibi-Témiscamingue, Nord-du-Québec and Lanaudière. With a master’s degree in management and governance of cooperatives and mutuals and a career entirely dedicated to the development of collective enterprises, Mr. Murray brings to the CDRQ and his team a wealth of experience and in-depth knowledge of the Quebec issues facing these organizations. “ We are proud to produce exceptional talents and see them develop at the heart of the organization. The appointment of Mr. Murray demonstrates the importance that the CDRQ places on the recognition and internal promotion of exceptional skills to ensure solid leadership over the long term. » Pascal Coutu – President of the CDRQ Board “ It is with pride that I accepted this mark of confidence from the Board. I can easily say that I have the CDRQ tattooed on my heart and even more so the team that supports me in our mission. The challenges ahead are numerous, mainly that of anchoring the CDRQ even more actively at the heart of the next Québec government action plan in social economy. » Evan Murray – General Manage – CDRQ  

Engage in outdoor activities and support cooperatives? Here's where to go!

Skiing, walking… climbing walls? Several Quebec cooperative businesses and organizations offer just that. Here are 5 of them to discover:1. Carve down the slopes at Mont-Orignal (Lac-Etchemin, Chaudière-Appalaches) This 620-meter mountain set in a beautiful landscape at Lac-Etchemin offers, among other things, 25 ski trails, 11 of which are illuminated at night, as well as several kilometers of cross-country skiing and snowshoeing. Though it has been around since 1974, it wasn’t until 2012 that the ski resort became a solidarity cooperative.2. Climb walls at Riki Bloc (Rimouski, Bas-Saint-Laurent) Another great transformation of a church – the Saint-Yves church in Rimouski – turned into a bouldering cooperative. They offer courses and you can grab a coffee on-site. Additionally, Riki Bloc also organizes climbing outings in the Rimouski area. Definitely worth exploring!3. Hike in the Vallée du Bras-du-Nord (Saint-Raymond, Capitale-Nationale) This outdoor cooperative, established in 2002, is located in Saint-Raymond, close to Quebec City. Its 9 trails spread across roughly 80 km are just one of the attractions for winter activity enthusiasts. Skiing, snowshoeing, fat biking, Via Ferrata, and backcountry skiing are among the reasons to spend a day there. Or several! The Vallée du Bras-du-Nord also offers accommodation (yurts, shelters, cabins) for those who might not want to leave…4. Plan an outdoor getaway with Bonjour Nature (Lanaudière) A cooperative travel agency for the Lanaudière region, offering round-trip transportation to Montreal. Whether it’s for a day of skiing, a stay at Lac Taureau, or a dogsledding adventure, it’s a great gift idea to give or indulge in!5. Skating and sliding at Parc régional des Grèves (Contrecœur, Montérégie) Cross-country skiing, snow scootering, ice skating, sledding, hiking… This cooperative park is a small package of winter pleasures! Definitely a destination to mark in your calendar during the holidays. Or before! And after!

Collective takeover, a promising avenue

La reprise collective has often prevented the closure of a business or its transition to foreign ownership. While not a miraculous solution, this model certainly addresses some issues. One-third of Quebec’s 127,000 entrepreneurs are over 55 years old, and 12,500 are considering selling their businesses in the next 12 months. The drawback is that there are far fewer people ready to start businesses today than there were 10 or even 5 years ago. In short, succession is uncertain for many, and the aging population is certainly affecting the future of many companies. Why consider collective takeover? Firstly, what is a collective takeover? It’s a mode of transferring a business that allows employees or external actors to collectively take over a business, either entirely or partially. This takeover can happen through a cooperative or a non-profit organization created for the takeover or one already in existence. And why might takeover be considered a solution, both for the person selling (the seller) and those buying (the buyers)? In summary, the power of a group. For instance, when the Mont-Orignal ski resort was on the verge of closing, a strong community solidarity movement allowed a group of local residents to buy the resort. Another example: the owner of Au bout du rang farm in Saint-Félix-de-Valois, tired of managing the business alone, offered her employees the opportunity to create a cooperative. From these examples, the Centre for Social Responsibility and Citizenship Studies (CERSE) identified over 300 similar cases in Quebec in 2020. 3 reasons to consider collective takeover: 1. Takeover provides resources that one doesn’t have alone: shared responsibilities, management, finances, etc. 2. There are specific funding sources for collective entrepreneurship, along with a strong support network, including organizations like the Quebec Business Transfer Centre (CTEQ) and the CDRQ, as well as other cooperatives and non-profits, often sympathetic to each other. 3. Finally, the collective model aims to be sustainable and based on common values. It’s no coincidence that cooperatives have a survival rate twice as high as private businesses. Seeking guidance? Yes! According to the CTEQ, 50% of sellers don’t know the value of their business. To address such questions, as well as legal, management, or governance aspects, seeking the right advice can save time, unnecessary efforts, and even money. You can find specialists within CDRQ, CTEQ, and gather plenty of information on the Repreneuriatcollectif.ca website. Free training on collective takeover As the Collective Takeover Coordinator at CDRQ, Soda Diack hosts a webinar on collective takeover titled “Transfer or Acquire a Business Collectively.” Throughout the webinar, several topics will be covered: Collective models. Industries with high potential for collective takeover. The process of a collective business takeover. Presentations of some takeover cases. A simplified positioning guide for a collective business takeover. Financial structuring examples. Key factors for a successful succession! Wednesday, January 10th at 6:30 PM Wednesday, May 1st at 11:45 AM

Faces of the Cooperative: Julie Gonthier-Brazeau

Proud of its team, the Quebec Regional Development Cooperative aims to showcase the individuals who make it up.In this article, a meeting with Julie Gonthier-Brazeau, Head of Legal Services and Governance Practice.What does your professional journey look like?I was a notary in private practice for 10 years in Tadoussac. I was the village notary, and I absolutely loved it! I chose the profession of notary to be able to live in this absolutely beautiful place. But at some point, I decided to come back to live in Montreal and, little by little, I started working in the cooperative environment. That’s when I really got into collective projects.Before becoming a notary, I worked for 5 years at the National Film Board (NFB) in the field of copyright, which I also loved. So, my career path isn’t linear because I enjoy change and novelty.What projects or challenges do you enjoy taking on?Since I got into it, I’m completely passionate about collective projects. All collective projects present human challenges in group dynamics. It’s not easy to build a project together; it takes longer.What I enjoy is helping the group find and bring out its collective intelligence, overcoming all the little challenges or conflicts that may arise along the way, and maintaining the direction and balance within the group so that the project materializes.What would you like to tell a new colleague?I would tell them to be open. In collective projects, that’s an essential quality. Sometimes, we have a certain vision of things, and we don’t really have a reason to question it. But it’s rare for everyone to share exactly the same vision in a collective, and that’s perfectly normal. So, it’s important to be open to listening to others, whether they are colleagues or clients, who have as much to teach us as we have to teach them.Your colleagues say about you that you are…Thorough and even a bit meticulous at times, but not too much (I hope). I also believe that my colleagues appreciate my ability to listen and my honesty in all circumstances.How would you explain your role in our organization?As the head of the governance and legal services practice, I support our team on the legal aspects of collective enterprises and social economy.I’m often called upon when there are more sensitive or complex issues in certain collective business projects, or for compliance-related matters. I also provide training on governance and cooperative law.Why do you enjoy working at CDRQ?I feel that I’m contributing to the transformation of society by taking part in the development of new business models that aim for greater equity among all stakeholders.The world of work and businesses is undergoing significant change currently, as we can see. We are contributing to building the society of tomorrow.What would be your hidden talent?I have a great talent for asking unanswered questions and philosophizing about the ideal world for entire nights!

The CDRQ is committed to supporting Anglophone collective enterprises

In an effort to support English-speaking entrepreneurs and to raise awareness about the colletive model as broadly as possible, the CDRQ has dedicated a resource person to meeting these objectives. It was with this in mind that, four years ago, the CDRQ signed a collaboration agreement with the Secrétariat aux relations avec les Québécois d’expression anglaise, known as the “SRQEA Mandate.” The SRQEA Mandate has accelerated the CDRQ’s ability to offer services in English to social economy entrepreneurs across Quebec. An additional agreement with the Regional Development Network (RDN) through its SeeNet initiative has made public services more accessible to Anglophone social economy enterprises, which were otherwise restricted to French by provincial language law.Reaching everyone, everywhere The CDRQ worked on several occasions in remote areas of the province. This has meant job opportunities, training for young people, access to business support services, and more. Through the SRQEA Mandate, the CDRQ brings its values of democracy, openness and inclusion to life for English-speaking businesses, including the 11 Indigenous nations among Quebec’s English-speaking communities. The CDRQ has provided this service while, of course, continuing to serve the French-speaking population.Conclusive results A number of social economy and English-language businesses have benefited from socioeconomic support, either through the CDRQ’s regional offices or through its partners in the social economy. Concretely, this is illustrated by:Only this year, 30 social-enterprises within the English-speaking community had benefited from the CDRQ’s socio-economic support ecosystems of their region and sector of activity.24 promotional and training activitiesThe development and adaptation of educational and awareness-raising toolsDocument translation to facilitate access to government programs or entrepreneurial support services In short, the CDRQ is aware of the importance of maintaining its support and services to English-speaking communities, and it wishes to continue doing so as well as possible.Any questions? You are an anglophone collective enterpreneur, and you would like to have some information about our services? Please contact our cooperative development advisor, Viviana Fernandez.

Demystifying How Cooperatives Work

The inner workings of cooperatives aresimpler than you might think! The co-op is essentially a business model that lets you builda company aligned with your values while sharing both the wealth and risks among itsmembers. It empowers members to make decisions, stay involved and participate democraticallyin the enterprise’s growth. In short, it is a chance to achieve something greater thanyourself. In this article, we demystify how cooperativeswork. What is acooperative? A cooperativeis: A group ofindividuals or companies who jointly decide to meet various shared needs byoperating anenterprise in accordancewith the Rules ofCooperative Action. These rules, which are recognized by the International CooperativeAlliance, are thefollowing:  Voluntary and open membership Cooperatives are voluntary organizations, open to anyoneable to use their services and willing to accept the responsibilities of membership, withoutany form of discrimination. Democratic member control Cooperatives are democratic organizations controlled bytheir members, who actively participate in determining policies and makingdecisions. Economic member participation Members contribute equitably to, and democraticallycontrol, the capital of their cooperative. Autonomy and independence Cooperatives are autonomousorganizations. Education, training and information Cooperatives provide training for their members, managersand employees so these latter can contribute effectively to the development of thebusiness. Cooperation among cooperatives(“intercooperation”) Cooperatives serve their members most effectively andstrengthen the cooperative movement by working together through local, national, regional,and international structures. Concern for community Cooperatives work for the sustainable development of theircommunities through policies approved by their members.A business model that serves itsmembers How does the cooperative stand out from other businessmodels? It is a distinct legal status. In Quebec, cooperatives are established underthe Cooperatives Act. Power is exercised democratically. Likewise, members join acooperative to access various services or products at the best possible cost or so theircommunity benefits. In addition to meeting common needs, members also have shared values.For example, democracy, equality and support for community development are at the heart ofall cooperative enterprises. Curious to learn more about the legal side ofthings? The Ministère de l’Économieet de l’Innovation has posted frequently asked questions on the subject [French only]. 10 advantages of the cooperativemodel Cooperatives offer an array of advantages. Thanks to thepooling of their members’ resources and expertise, cooperatives have a higher survival rate than other business models!For example, in Quebec, after 10years of operation, 44% of cooperatives are still in business, compared to just 20% of othermodels. This statistic speaks volumes to the strength of this businessmodel.   Here are 10 additional advantages of the cooperativemodel: Pooling resources Managing the business democratically Facilitating the takeover of an existingbusiness Bringing together entrepreneurs to maximize theirresults Building and maintaining collective wealth overtime Qualifying for certain tax advantages (CIP and Co-opRRSP). Distributing patronage dividends based on each member’s use of thecoop’s services Limiting members’ financial responsibility to the capital theyinvested Combining economic profitability with socialsuccess Holding principles of solidarity, sharing andequity How to structure a cooperativebusiness Remember that, in addition to being an association ofindividuals or companies, a cooperative is also a business. To ensure optimum performance,it therefore has different components, which include:  ASSOCIATIVESTRUCTUREAn associative structure is what ensures that the company operates democratically. Acooperative typically consists of a general meeting and a board of directors. The board canhave between 3 and 15 members. During the general meeting, members determine the directionof the business based on the principle of “one member, one vote.”  ORGANIZATIONALSTRUCTUREThe organizational structure of a co-op is similar to that of private companies, including itsgeneral management, administrative teams, staff and so on. This ensures operations meet theneeds of the members and therefore varies according to the size and nature of economicactivities. The cooperative’s management and staff may also be members and participate indecision-making.  FINANCIALSTRUCTUREThe financial structure of a co-op is unique to this model, as surpluses belong tomember-owners, who can determine how profits will be distributed or allocate them to thegeneral reserve for future investments. Are you familiar with patronage dividends? Indeed,the board may also choose to distribute profits to members in the form of patronagedividends, proportional to each member’s use of the cooperative over the pastyear. In short, these structures enable the cooperative to be runon behalf of its members. They also ensure that the company combines economic profitabilityand the fulfilment of its social mission! To find out more about the structure of a cooperative, visit thewebsite of the Quebec Ministère de l’Économie, de l’Innovation et del’Énergie. Types ofcooperatives Over the last century, cooperatives have played a key rolein Quebec’s economy and operate in a wide range of sectors. The cooperative business modelcan be adapted to suit different groups, settings and economic spheres. Most importantly, itis conducive to developing businesses capable of meeting a variety of needs,including: Obtaining a service (housing, local or neighbourhood services,funeral services, etc.) through the consumer cooperative or the solidarity cooperative Creating jobs or business successions through work cooperatives or worker shareholdercooperative Processing and marketing products through producers cooperatives In Quebec, for example, there are five main categories ofcooperatives, though co-ops may have different economic activities andgoals.   Interested to learn more about the different typesof co-ops? Check out our article! Interested in the cooperative businessmodel? Our free webinar Going into Business with aCooperative isthe perfect opportunity to ask our experts your questions! In this training session, you’llsee how strength in numbers sets the cooperative business model apart! 

What Is the Difference Between a Cooperative and an NPO?

You have a business idea, but are not sure whether a cooperative or a non-profit organization (NPO) would be the best fit for your venture? You do know though that collective entrepreneurship definitely interests you.  You have come to the right place! In this article, you will discover the unique features that distinguish non-profits from cooperatives. Cooperative or non-profit: The answer in five questions  Determining whether a cooperative or non-profit is the best legal structure for your collective business can be challenging. Here are five questions to guide your decisionmaking!  QUESTION 1: WHO IS YOUR PROJECT FOR?  Does your project address a common need felt by a group of individuals or businesses or the community (neighbourhood, village, region, etc.)?   A cooperative brings people together primarily to meet the common needs of its members. That is why the organization’s focus is on its members. In contrast, an NPO typically works to address broader community needs, and its objectives must be purely social, charitable, cultural, philanthropic or altruistic.   Want to find out more? Click here to learn more about the importance of members in a co-op [French only].  QUESTION 2: HOW WILL YOU FINANCE YOUR PROJECT?  The financial package for NPOs typically is built around grants and other contributions. To secure start-up capital, however, a cooperative relies on the economic participation of its members. This member involvement is a major leverage in financing the business!   In both cases, to prepare your search for financing, it is invaluable to get advice from the experts.  QUESTION 3: HOW WILL YOUR PROJECT TURN A PROFIT?  An NPO usually gathers people to develop educational, cultural, environmental, sports or community activities. The organization is, therefore, not aiming for profitability but rather for financial viability to be able to carry out these activities. This may or may not involve the sale of products and services. In other words, an NPO does not aim to make a profit or to provide its members with economic benefits. Instead, its success is measured by its ability to fulfil its community obligations.   Cooperatives, on the other hand, focus not only on generating surpluses but also on meeting the needs of their members and improving quality of life in their communities. These businesses strive to be competitive in the marketplace while upholding social principles. For example, a cooperative may seek to improve quality of life by:  Creating employment in the region  Setting up local community services  Fighting poverty  Preserving the environment   The economic profitability of a co-op consists of generating collective wealth.   Take a look at our article and video on the subject [French only].  QUESTION 4: WHO WILL THE STAKEHOLDERS BE?  When a project requires significant involvement from volunteers and community members, the NPO is generally the most appropriate legal structure.   For cooperatives, it can be suitable for a group of individuals or companies pooling their resources to address common needs, such as selling products or services or creating jobs. The cooperative is also the right legal structure if your goal is to give members control and power within the business.  QUESTION 5: WHAT LEGAL STRUCTURE WILL GOVERN YOUR ORGANIZATION?  From a legal standpoint, the general meeting of an NPO has very limited powers: electing the board of directors, ratifying by-laws, appointing the auditor and receiving reports and balance sheets. NPOs are governed by Part 3 of the Companies Act.   In a cooperative, the power lies with the members—those who use the cooperative’s services as consumers, employees or producers. However, this in no way hinders the cooperative from pursuing a social, cultural or environmental mission. In fact, more and more young people are founding cooperatives to work differently or take professional action on social, cultural and environmental issues.   The legal framework for cooperatives is precisely defined under the Quebec Cooperatives Act, which outlines members’ rights and powers.  Cooperative or non-profit: The advantages of each model  Each business model has its own set of advantages. To simplify your decision-making process, here are a few that are worth considering.     THE COOPERATIVE  Among other things, co-ops: Are collectively owned according to the very simple democratic principle of one member, one vote Involve their members at various levels to ensure the business’ sustainability Give members the opportunity to participate in ownership, decision-making and profits Support self-financing, with members benefiting from surpluses via rebates or interest on their investments in the form of shares. Offers certain tax advantages (CIP and Coop RRSP) for members    THE NON-PROFIT  Non-profits:  Have a social mission and structure aimed at reducing inequalities Use a model based on close ties with the community, staff or customers Ensure that benefits are more broadly distributed at the local level Allow individuals to advance a cause they believe in and derive satisfaction from contributing their time to this mission Can issue charitable receipts if recognized as a charitable NPO by Canada Revenue AgencyInterested in collective entrepreneurship?  Whether through a cooperative or an NPO, if you are here, it is because collective entrepreneurship appeals to you. Comparing different legal structures for your business requires careful consideration.  Why not contact our team to discuss your project?  

Securing your corporate data - Training

Notice – This webinar is presented in French Cybersecurity concerns all organizations. Your company’s IT security involves guaranteeing the integrity of your physical and digital resources against data theft or loss. It also ensures the consistency of your information and access to it. With our webinar Securing your company’s data you’ll learn more about the importance of securing your data and your business from digital threats.Topics covered:Why does IT security affect everyone?Essential practices for securing confidential information;Technical, organizational and human resources;Business continuity planning: data backup and recovery, maintenance and training, the cornerstones of security;Avoiding misuse;Tips for protecting your data.Target audience All Quebec social economy enterprisesYour trainer This training session is given by Bruno Éthier. A software engineer with 20 years’ experience in information technology, Bruno has been Director of Digital Transition on the CDRQ team for over 2 years. Passionate about technological development, he brings a wealth of experience in fields as diverse as software, naval aviation and international cooperation.