BC’s Registry Services has introduced new requirements for the wording of special resolutions housing co-ops typically use to amend their Rules. These new requirements must be followed.

Explanation of Rules Change

A special resolution is required to amend a co-op’s Rules or Occupancy Agreement. The Occupancy Agreement is almost always attached to the Rules as Schedule A. Under the Cooperative Association Act (section 18) the Rules have the legal force of a signed contract between the co-op and each member. So, adopting the Occupancy Agreement as a schedule to the Rules gives it the same legal weight as a contract signed by the co-op and individually by each member. In that way, it functions in much the same way as a lease between a landlord and a tenant.

The Registry will now require special resolutions amending co-op Rules to omit any reference to the Occupancy Agreement. It also requires that co-ops avoid attaching the complete Occupancy Agreement to the text of the special resolution.

While this will require some changes in current practice, amendments to the Occupancy Agreement will still be possible. Simply substitute the phrase “Schedule A to the Rules” wherever you would normally refer to the Occupancy Agreement.

For example:

BE IT RESOLVED THAT section X.x of Schedule A to the Rules of the Co-op be deleted and replaced by the following: [new section X.x of Schedule A].

Include the text of the special resolution on the form provided by the Registry HERE. You then submit along with the $70 filing fee.

Do not attach the Occupancy Agreement to the form. The Registry will return it to you and your amendment may not be filed.

CHF BC has updated its member resources to reflect this new procedure. Log in and visit the Model Rules pages of our website for more information. Contact us at members@chf.bc.ca if you have any questions.