Marginal note:Notice of error

• 264. (1) A director or officer of a cooperative shall, without delay, notify the auditor and the audit committee, if any, of any error or misstatement of which the director or officer becomes aware in a financial statement that the auditor or a former auditor has reported on.

• Marginal note:Errors in financial statements

  (2) If the auditor or former auditor of a cooperative is notified or becomes aware of an error or misstatement in a financial statement on which the auditor or former auditor has reported, and if in their opinion the error or misstatement is material, the auditor or former auditor must inform each director accordingly.

• Marginal note:Duty of directors

  (3) When under subsection (2) the auditor or former auditor informs the directors of an error or misstatement in a financial statement, the directors shall

  • (a) prepare and issue revised financial statements; or

  • (b) otherwise inform the members and shareholders and, if the cooperative is one that is required to comply with section 252, inform the Director of the error or misstatement in the same manner as it informs the members.

Marginal note:Qualified privilege

265. Any oral or written statement or report made under this Act by the auditor or former auditor of a cooperative has qualified privilege.

Marginal note:Definitions

266. The definitions in this section apply in this Part.

“event of default”

« cas de défaut »

“event of default” means, in relation to a trust indenture, an event specified in the trust indenture on the occurrence of which the principal, interest and other money payable under the trust indenture become or may be declared to be payable before maturity, but the event is not an event of default until all the conditions set out in the trust indenture in connection with the giving of notice of the event have been satisfied or the period for giving the notice has elapsed.

“guarantor”

« caution »

“guarantor” means a person that has guaranteed an obligation of an issuer under a trust indenture.

“issuer”

« émetteur »

“issuer” means a cooperative that has issued, is about to issue or is in the process of issuing debt obligations.

“trustee”

« fiduciaire »

“trustee” means a person appointed as trustee, including the administrator of the property of others, under the terms of a trust indenture to which a cooperative is a party, and includes a successor trustee.

“trust indenture”

« acte de fiducie »

“trust indenture” means a deed, indenture or other instrument or act, including a supplement or amendment, made by a cooperative under which the cooperative issues debt obligations and in which a person is appointed as trustee for the holders of the debt obligations issued under it.