Annual Report - Government of Nova Scotia · Co-operatives Annual Report ... • winding up and...

Annual Report

Activities of Nova Scotia Co-operatives in 2003

Co-operatives Branch

Co-operatives Annual Report

This report is published by the Co-operatives Branch of Service Nova Scotia and MunicipalRelations. It covers the activities of registered co-operatives taken from reports submitted to thisoffice for their financial year ending in 2003. This document is partial fulfilment of therequirements of the Co-operative Associations Act, Chapter 98, Acts of 1989, Section 5(2).

MinisterHonourable Barry Barnet

Deputy MinisterGreg Keefe

Inspector of Co-operativesRonald Skibbens

Administrative Assistant Linda Yorke

Contact: Co-operatives BranchService Nova Scotia and Municipal Relations35 Commercial Street, Suite 101Truro, Nova Scotia B2N 3H9

Phone: (902) 893-6190Fax: (902) 893-6108Email: [email protected]

www.gov.ns.ca/snsmr/coop/ (home page)www.gov.ns.ca/snsmr/rjsc/search.asp (co-operatives’ public records)

Acknowledgement: Co-operatives Branch would once again like to thank David W. Cody of theNova Scotia Geomatics Centre for his assistance in producing the maps that accompany thispublication.

Table of Contents

Letter to the Minister Responsible for Co-operatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Letter to Nova Scotia Co-operatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

The International Co-operative Alliance Statement on the Co-operative Identity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Financial Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Operating Results Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82003 Operating Results Summary by Type and Sub-Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1063-Year Operating Results Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1163-Year Balance Sheet Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Demographic Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Demographic Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Reporting Co-operatives: Distribution by Type and County . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Twenty-four Co-operatives Incorporated in 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Anniversaries of Incorporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Co-operatives Struck in 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Employees and Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Co-operative Functioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Co-operative Functioning Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Annual Report on Co-operatives as of December 31, 2003 1

Letter to the Minister Responsible for Co-operatives

The Honourable Barry BarnetMinister of Service Nova Scotia and Municipal Relations

Dear Minister Barnet:

I am pleased to present the Co-operatives Annual Report in partial fulfilment of the requirements of theCo-operative Associations Act. The Act directs the Inspector to oversee incorporations, registrations,inspections and other legal procedures. This report is the 68th since the 1935 Act, which appointed anInspector who is required to report annually to the Minister responsible for the Act. It also marks mysecond year as the administrator of the Act.

In summary, there were 24 co-operatives incorporated in 2003 and none struck from the register, bringingthe total to 320. Of those, 256 or 80% provided the information presented in this report, which is asubstantial increase over the preceding year’s reporting rate of 65%. This is due to Co-operatives Branchfollowing the lead of the Registry of Joint Stock Companies by sending out bills and reminders to eachco-operative each year. The automated system should continue to increase compliance and so I hope toreport increased compliance again next year.

When the new automated system was implemented, Co-operatives Branch took the opportunity to revisethe Annual Report to the Inspector, in part by asking co-operatives to report on how they function, notonly as a business but also as a co-operative. As a result, for the first time this report provides the usualfinancial and demographic findings, and also presents data on co-operative or democratic functioning.

Financial and Demographic findings:• Co-operatives reported $675 million in sales and $25 million in other income for a total income of

nearly $701 million.• Gross profits were $105 million and net income was over $2 million.• Total assets were $328 million and members’ equity was $86 million.• 36,000 Nova Scotians were members of a co-operative.• 3,200 Nova Scotians were employed either full-time or part-time within the sector.

Co-operative functioning:• 72% of the co-operatives indicated that they had a full board of directors.• 76% held an Annual General Meeting, and of those 95% established quorum and 90% presented

financial statements which were approved by the membership.• Co-operatives held 1,432 board meetings and 760 members’ meetings, for an average of 6 board

meetings and 3 members meetings per co-operative.• 920 members attended an educational event for an average of 4 members per co-op.

I trust that this overview has provided you with a comprehensive snapshot of the co-operative sector.

Sincerely,

Ronald SkibbensInspector of Co-operatives


Letter to Nova Scotia Co-operatives

Dear Co-operators,

This is the 68th year that co-operatives have registered under the Co-operative Associations Act.This annual report offers a snapshot of Nova Scotia co-operatives as they existed in 2003.

The primary responsibility of the Co-operatives Branch is to administer the Act by: • approving and filing incorporation documents.• processing yearly filing requirements.• approving changes to bylaws, articles and other special resolutions.• inspecting or examining the affairs of co-operatives.• winding up and supervising liquidation when a co-operative no longer serves its members.

To make your annual renewal process simpler, renewals were automated in 2003. Yourco-operative now receives two notices which list the three annual filing requirements. If any ofthese requirements are late (more than five months past your co-operative’s fiscal year end), theco-operative is sent a third notice explaining that it has been placed in default until therequirements are met. Defaulted co-operatives that do not make efforts to comply are eventuallystruck from the registry. To see your co-operative’s current status, visit our website atwww.gov.ns.ca/snsmr/rjsc/search.asp.

When the automated renewal process was implemented, I took the opportunity to begin askingquestions on how your co-operative functions, not only as a business but also as a co-operative. This move is a result of seeing that good finances don’t always make a good co-operative, andthat poor co-operative functioning often leads to poor finances. I urge your co-operative toreview the “International Co-operative Alliance Statement on the Co-operative Identity” on thefollowing page. I also urge your co-operative to consider budgeting up to 1% of your totalrevenues to education. Results indicate that those co-operatives that do are better co-operatives.

If you have any questions about this report or the services of the Co-operatives Branch, pleasecontact me at your convenience.

Co-operatively yours,

Ronald SkibbensInspector of Co-operatives

http://www.gov.ns.ca/snsmr/rjsc/search.asp


The International Co-operative Alliance Statement on the Co-operative Identity

Definition

A co-operative is an autonomous association of persons united voluntarily to meet their

common economic, social and cultural needs and aspirations through a jointly-owned and

democratically-controlled enterprise.

Values

Co-operatives are based on the values of self-help, democracy, equality, equity, and

solidarity. Co-operative members believe in the ethical values of honesty, openness,

social responsibility, and caring for others.

Principles

The co-operative principles are guidelines by which co-operatives put their values into

practice. The co-operative principles are:

1. Voluntary and Open Membership

2. Democratic Member Control

3. Member Economic Participation

4. Autonomy and Independence

5. Education, Training and Information

6. Co-operation among Co-operatives

7. Concern for the Community

For full text see: www.ica.coop/ica/info/enprinciples.html

http://www.ica.coop/ica/info/enprinciples.html

4

Financial Data


Financial Summary

Co-operatives in Nova Scotia must self-identify as either for-profit or non-profit. In addition,Co-operatives Branch classifies them as either marketing or consumer co-operatives. For-profitco-operatives were almost evenly split between consumer and marketing types. However,non-profits were mostly consumer co-operatives, with the majority being housing co-operatives. Viewed from the marketing versus consumer perspective, most marketing co-operatives werefor-profit, and consumer co-operatives were more evenly distributed between for-profit andnon-profit status.

For profit Non-profit Total

Marketing 81 8 89

Consumer 67 100 167

Total 148 108 256

On page 8 are tables showing the financial data for the 256 co-operatives that reported on their2003 fiscal year. There were 89 marketing co-operatives and 167 consumer co-operatives thatreported in 2003. Results on page 8 show the following:• Marketing co-operatives had the majority of income and expenses at 84% of the totals.• Marketing co-operatives accounted for 86% of gross margin and 61% of total net income.• Consumer co-operatives reported 40% of assets, 44% of liabilities and 27% of equity.

There were 148 for-profit and 108 non-profit co-operatives that reported the following:• For-profit co-operatives reported 98% of the income and 97% of the expenses of all

co-operatives.• For-profits showed almost $3 million in net income on total income of $684 million.• Non-profits showed a net loss of $248,000 on net income of over $16 million.• Non-profits had $95 million in assets which was 29% of the total in the sector.• Non-profit co-operatives also had $4.5 million in equity, representing 5% of total equity.

The tables on page 10 show details by co-operative type. The tables show that retailco-operatives accounted for the vast majority of economic activity within the consumerco-operatives, with over 85% of the income, expenses, gross margin and net income. In addition,the retail sector had nearly 70% of the equity within consumer co-operatives. The only variationfrom retail’s dominance was that housing co-operatives accounted for 72% of the assets amongconsumer co-operatives.

The tables on page 10 also show that marketing co-operatives were dominated by one type ofco-operative. Agricultural co-operatives accounted for over 85% of all marketing co-operativesincome, expenses and gross margin. However, fishery co-operatives accounted for 93% of thebottom line of net income, whereas agricultural co-operatives actually showed a small loss. Agriculture again asserted its dominance in the areas of total assets and equity, at 92% and 83%respectively.

6Figure 1. Consumer and Marketing Co-operatives

Figure 2. For-profit and Non-profit Co-operatives

7

Figure 3. Sales and Cost of Goods Sold


1 Results from 256 co-operatives reporting on their 2003 fiscal year. This is 80% of the 323

registered co-operatives in the Province.

Operating Results Summary 1

Consumer Marketing All Co-operatives2003 2002 2003 2002 2003 2002

Sales 93,393,031 83,678,000 582,134,182 564,209,000 675,527,213 647,887,000Other Income 18,342,509 18,606,000 7,003,659 4,603,000 25,346,168 23,209,000Total Income 111,735,540 102,284,000 589,137,841 568,812,000 700,873,381 671,096,000

Cost of Goods Sold 78,359,186 63,146,000 491,772,056 477,002,000 570,131,242 540,148,000Other Expenses 32,477,503 38,007,000 95,941,118 86,732,000 128,418,621 124,739,000Total Expenses 110,836,689 101,153,000 587,713,174 563,734,000 698,549,863 664,887,000

Gross Margin 15,033,845 20,532,000 90,362,126 87,207,000 105,395,971 107,739,000Net Income 898,851 1,131,000 1,424,667 5,078,000 2,323,518 6,209,000

Assets 130,898,358 124,087,000 197,566,900 187,969,000 328,465,258 312,056,000Liability 107,712,295 101,742,000 134,712,512 123,387,000 242,424,807 225,129,000Equity 23,186,062 22,349,000 62,854,390 64,586,000 86,040,452 86,935,000

For Profit Non-Profit All Co-operatives2003 2002 2003 2002 2003 2002

Sales 675,330,546 647,419,000 196,667 468,000 675,527,213 647,887,000Other Income 9,113,063 8,387,000 16,233,105 14,822,000 25,346,168 23,209,000Total Income 684,443,609 655,806,000 16,429,772 15,290,000 700,873,381 671,096,000

Cost of Goods Sold 570,065,986 539,902,000 65,256 246,000 570,131,242 540,148,000Other Expenses 111,806,087 109,686,000 16,612,534 15,053,000 128,418,621 124,739,000Total Expenses 681,872,073 649,588,000 16,677,790 15,299,000 698,549,863 664,887,000

Gross Margin 105,264,560 107,517,000 131,411 222,000 105,395,971 107,739,000Net Income 2,571,536 6,218,000 (248,018) (9,000) 2,323,518 6,209,000

Assets 232,933,440 220,372,000 95,531,818 91,684,000 328,465,258 312,056,000Liability 151,427,244 137,946,000 90,997,563 87,183,000 242,424,807 225,129,000Equity 81,506,197 82,429,000 4,534,255 4,506,000 86,040,452 86,935,000

9Figure 4. Consumer Co-operatives by Sub-type

Figure 5. Marketing Co-operatives by Sub-type


2 Results from 256 co-operatives reporting on their 2003 fiscal year. This is 80% of the 323

registered co-operatives in the Province.

2003 Operating Results Summary by Type and Sub-Type 2

Consumer Co-operatives

Housing Investment Retail Services Total 2002 Total

Sales 0 0 92,729,191 663,840 93,393,031 83,678,000Other Income 14,311,115 397,822 1,470,601 2,162,971 18,342,509 18,606,000Total Income 14,311,115 397,822 94,199,792 2,826,811 111,735,540 102,284,000

Cost of Goods Sold 0 0 77,806,760 552,426 78,359,186 63,146,000Other Expenses 14,554,443 303,454 15,331,417 2,288,189 32,477,503 38,007,000Total Expenses 14,554,443 303,454 93,138,177 2,840,615 110,836,689 101,153,000

Gross Margin 0 0 14,922,431 111,414 15,033,845 20,532,000Net Income (243,328) 94,368 1,061,615 (13,804) 898,851 1,131,000

Assets 94,432,521 3,037,481 31,071,679 2,356,677 130,898,358 124,087,000Liability 91,288,996 526,576 15,399,662 497,061 107,712,295 101,742,000Equity 3,143,525 2,510,905 15,672,016 1,859,616 23,186,062 22,349,000

Marketing Co-operatives

Agriculture Craft Fishery Timber Worker Total 2002 Total

Sales 506,961,266 917,097 61,593,463 3,859,771 8,802,585 582,134,182 564,209,000Other Income 3,843,682 195,273 491,449 684,286 1,788,969 7,003,659 4,603,000Total Income 510,804,948 1,112,370 62,084,912 4,544,057 10,591,554 589,137,841 568,812,000

Cost of Goods Sold 426,108,367 466,401 54,518,335 3,473,454 7,205,499 491,772,056 477,002,000Other Expenses 84,726,652 598,694 6,240,439 1,107,885 3,267,448 95,941,118 86,732,000Total Expenses 510,835,019 1,065,095 60,758,774 4,581,339 10,472,947 587,713,174 563,734,000

Gross Margin 80,852,899 450,696 7,075,128 386,317 1,597,086 90,362,126 87,207,000Net Income (30,071) 47,275 1,326,138 (37,282) 118,607 1,424,667 5,078,000

Assets 181,943,789 661,220 9,296,787 1,646,643 4,018,461 197,566,900 187,969,000Liability 129,662,038 120,873 2,411,314 484,898 2,033,389 134,712,512 123,387,000Equity 52,281,751 540,347 6,885,474 1,161,745 1,985,073 62,854,390 64,586,000


63-Year Operating Results Summary (all financial data in $000's)

RegisteredCo-ops

ReportingCo-ops Sales

OtherIncome

TotalIncome

Cost ofGoodsSold

OtherExpenses

TotalExpenses

NetIncome

GrossMargin

1940 62 3,191 526 164

1950 113 14,167 2,142 389

1960 114 21,145 4,629 551

1970 117 79,445 14,133 589

1980 124 302,486 57,422 4,387

1990 228 512,072 120,204 3,781

1995 241 608,932 133,212 2,190

1996 240 637,530 143,170 3,920

1997 238 650,969 142,199 2,598

1998 217 646,345 146,045 1,403

1999 209 658,090 147,276 2,907

2000 194 612,459 137,619 7,743

2001 247 662,994 142,628 9,136

2002 293 193 647,887 23,209 671,096 540,148 124,739 664,887 6,209 107,739

2003 323 256 675,527 25,346 700,873 570,131 128,419 698,550 2,324 105,396

12

Figure 6. Assets and Member Equity


63-Year Balance Sheet Summary

(all data in $000's)

Assets Liabilities Equity

1940 1,184 293 8911945 2,186 582 1,6041950 5,041 1,876 3,1651955 6,246 2,103 4,1431960 9,086 3,382 5,7041965 14,736 8,011 6,7251970 27,622 16,670 10,9521975 64,445 47,261 17,1841979 81,623 52,579 29,0441985 170,845 120,202 50,6431990 262,268 199,633 62,6351995 313,594 242,997 70,5972000 312,308 233,418 78,8902001 314,098 232,363 81,7352002 312,056 225,129 86,9352003 328,465 242,425 86,040

14

Demographic Data


Demographic Summary

The demographic data presented on page 16 indicates that 32% of all reporting co-operativeswere in Halifax County, followed by Cape Breton County which reported 11% of the total. Housing co-operatives were the largest sub-type at 31% of the total, followed by both service andworker co-operatives at 19% each.

On page 17 is a list of the 24 new co-operatives that were incorporated in 2003. Co-operativesBranch warmly welcomes them to the sector and wishes them every success in their endeavors. On pages 18 and 19 are the co-operatives around the province with significant anniversaries in2003 and 2004.

The data on page 22 shows that Pictou and Kings counties each had over 800 employees in theco-operative sector. The agricultural co-operatives employed the majority of employees, being 5of the largest 6 employers and employing nearly 75% of all employees in the sector. The sametable shows that membership was over 7,000 in Inverness, followed by Colchester and Halifaxcounties with over 5,000 each. Nine of the ten largest co-operatives based on membership areretail consumer co-operatives, with the one in tenth place being an investment co-operative.


Reporting Co-operatives: Distribution by Type and County

Housing Investment Retail ServiceTotal

ConsumerAgriculture Craft Fishery Timber Worker

TotalMarketing

Total Co-ops

Annapolis 0 0 0 1 1 0 0 0 0 3 3 4

Antigonish 4 0 2 2 8 0 0 1 0 1 2 10

Cape Breton 6 2 1 3 12 2 1 2 0 10 15 27

Colchester 3 1 3 3 10 3 0 1 0 5 9 19

Cumberland 1 0 3 2 6 2 0 0 2 2 6 12

Digby 1 1 1 2 5 1 0 0 0 1 2 7

Guysborough 0 0 2 1 3 0 0 1 0 0 1 4

Halifax 53 2 2 13 70 3 2 1 0 7 13 83

Hants 0 0 0 0 0 0 0 0 0 0 0 0

Inverness 2 0 5 7 14 0 1 1 0 3 5 19

Kings 3 0 1 6 10 3 0 0 0 8 11 21

Lunenburg 1 0 2 1 4 0 1 0 1 1 3 7

Pictou 4 0 0 0 4 1 1 1 1 3 7 11

Queens 0 0 0 0 0 0 0 0 0 0 0 1

Richmond 0 2 3 5 10 0 0 1 0 3 4 14

Shelburne 0 0 0 0 0 0 0 0 0 0 0 1

Victoria 0 0 3 2 5 1 0 1 1 2 5 10

Yarmouth 2 0 1 0 3 0 0 3 0 0 3 6

Total 80 8 29 48 165 16 6 13 5 49 89 256

The subtype for the one co-operative in each of Queens and Shelburnecounties is not identified for reasons of confidentiality.

Co-operatives Branch groups co-operatives into two types: consumerand marketing. Consumer co-operatives are organized for the benefitof the buyer, marketing co-operatives are organized for the benefit ofthe seller. The two main types are further divided into several subtypes.

In the consumer type, there are housing, investment, retail andservice co-operatives. The members of a housing co-operative, forinstance, work together to provide shelter that they own in common.The five types of marketing co-operative we recognize areagriculture, craft, fishery, timber and worker. In a worker co-operative, for example, labourers organize together to market theirservices.


Twenty-four Co-operatives Incorporated in 2003

Bottle Rocket Studio Co-operative Limited HalifaxCape Breton Snow Belt Marketing Co-operative Limited Smelt BrookCape Breton Xtreme Sports Co-operative Limited ArichatCentrelea Textile Co-operative Limited CentreleaClifton Acres Seniors Housing Co-operative Limited Truro

Co & Co Communication Design Co-operative Limited HalifaxCo-op Taxi & Limousine HalifaxCoastal Community Radio Co-operative Limited Glace BayCo-opérative Radio-Halifax-Métro Limitée HalifaxCreative Workers Co-operative Limited Dartmouth

Deep Roots Music Co-operative Limited WolfvilleDestination Richmond Tourism Co-operative Limited St. Peter’sFour Winds Market Co-operative Limited EnglishtownGung Ho! Employment Co-operative Limited HalifaxIndependent Crab Co-operative Limited Sheet Harbour

Investing in Nova Scotia Enterprises Co-operative Limited TruroIsland Kitchen Manufacturers Co-operative Limited New WaterfordLa Frimousse Pre-School Co-operative Limited PomquetLa Résidence Acadienne Co-operative Limited CheticampMissing Lint Co-operative Limited Sydney

Rags to Riches Recycling Co-operative Limited D’EscousseSpanish Bay Snap Marketing Co-operative Limited GabarusTatamagouche Farmers’ Market Co-operative Limited TatamagoucheWickwire Co-operative Limited Wolfville


Anniversaries of Incorporation

In 2003, we had 26 co-operatives celebrating the passage of one decade or more since theirincorporation. We congratulate these co-operatives and their boards for their continuedcommitment to co-operation and member services. In 2004, the 19 co-operatives listed on thefollowing page are celebrating a similar milestone.

60th 1943 ACA Co-operative Limited

River Hebert Co-operative Limited

40th1963 Co-operative Artisonale de Cheticamp Ltée

Fleet Co-operative Limited

30th1973 Baddeck Valley Wood Producers Co-operative Limited

Black Duck Handcraft Co-operative LimitedCheggogin Dyke Co-operative Limited

20th1983 Anathoth Housing Co-operative Limited

Apple Blossom Housing Co-operative LimitedCharles Court Housing Co-operative LimitedCross Roads Housing Co-operative LimitedFresh Start Housing Co-operative LimitedGimmie Shelter Continuing Housing Co-operative LimitedNudondin Housing Co-operative LimitedOrangedale Farmers Co-operative LimitedPrivateer Housing Co-operative LimitedRocky Road Housing Co-operative LimitedSamson Co-operative LimitedTopshee Housing Co-operative LimitedTrillium Housing Co-operative Limited

10th1993 Arimathea Funeral Co-operative Limited

Chignecto Manor Co-operative LimitedCity Market of Halifax Co-operative LimitedNorth Shore Fishermen's Co-operative LimitedSSG Support Services Group Co-operative LimitedTracadie Island Co-operative Limited


Anniversaries in 2004

60th

1944 De La Tour Co-operative Society Limited

40th 1964 United Farmers Co-operative Limited

30th 1974 Atlantic Filmmaker’s Co-operative LimitedClare Co-operative Shipping Limited

20th 1984 Cliffside Housing Co-operative LimitedFlip Flop Housing Co-operative LimitedHubtown Housing Co-operative LimitedIsland Continuing Housing Co-operative LimitedJoe MacIsaac Housing Co-operative LimitedLoyalist Housing Co-operative LimitedNorth Bay Fishermen’s Co-operative LimitedSaduke Housing Co-operative LimitedSeaview Housing Co-operative LimitedWest Halifax Housing Co-operative Limited

10th 1994 Canoe Lake Machinery Co-operative LimitedLa Co-operative Pre Maternelle LimitéeL.C. Blueberry Co-operative LimitedMutual Electric Co-operative LimitedTower Heights Housing Co-operative Limited


Co-operatives Struck in 2003

There were no co-operatives struck in 2003. This was because of two activities at Co-operativesBranch:

• The records at Co-operatives Branch were updated by contacting and striking thoseco-operatives that had not provided annual filing requirements for more than two years.

• After the data update, a new automated renewal process was implemented. For the firsttime, co-operatives were contacted twice in the five months following their fiscal year-end. Those co-operatives that did not reply were placed on a schedule leading towardstrike-off. However because the automated process was begun in October 2003, the firstautomated strike-off schedule was not complete until June 2004.

As a result of these two activities no co-operatives were struck in 2003. However, the automatedrenewal process will most likely result in a large number of co-operatives being struck in 2004 aswe complete the first full cycle of the automated renewal process.

21Figure 7 Part-time and Full-time Employment

Figure 8 Membership


Employees and Membership

By County

Full-time

Part-time

TotalEmployees Membership

Annapolis 0 0 0 22Antigonish 9 20 29 510Cape Breton 18 17 35 2,287Colchester 45 56 101 5,553Cumberland 35 43 78 3,863Digby 1 190 191 213Guysborough 15 19 34 878Halifax 480 125 605 5,295Hants 0 0 0 0Inverness 69 34 103 7,432Kings 771 44 815 2,848Lunenburg 4 3 7 720Pictou 607 271 878 638Queens 0 0 0 20Richmond 48 41 89 1,699Shelburne 0 0 0 22Victoria 33 192 225 2,999Yarmouth 14 16 30 1,050

2,149 1,071 3,220 36,049


Employees and Membership

By Type

TypeCo-operatives

Reporting

Employees

Number ofMembers

Full-time

Part-time Total

Consumer

Housing 82 6 9 15 1,802

Investment 8 6 6 12 1,784

Retail 29 163 193 356 25,812

Service 48 41 20 61 3,978

Total Consumer 167 216 228 444 33,376

Marketing

Agriculture 16 1,807 503 2,310 1,296

Craft 6 28 2 30 90

Fishery 13 13 225 238 427

Timber 5 5 22 27 250

Worker 49 80 91 171 610

Total Marketing 89 1,933 843 2,776 2,673

TotalCo-operatives

256 2,149 1,071 3,220 36,049

24

Co-operative Functioning


3 Thanks are extended to David Emery formerly at the Co-operative Housing Federation ofCanada and to Warren Olsen at Housing Services in the Department of Community Services.

Co-operative Functioning Summary

The Annual Report to the Inspector is the form used by co-operatives to report to Co-operativesBranch. In 2002, it was changed to follow the lead of the Registry of Joint Stock Companies intwo ways. First, it now included the data in our files so that co-operatives could simply correctand update information instead of providing it from scratch every year. Also it is now sent outtwice to co-operatives in the five months following their fiscal year-end to provide opportunityfor compliance with the Co-operative Associations Act. Along with those significant changes,Co-operatives Branch also took the opportunity to begin asking co-operatives to tell us not onlyabout their business but also about their co-operative functioning.

The table on page 26 shows the answers to the new questions on co-operative functioning. Thequestions resulted from observations that good finances don’t always make a good co-operative,and that poor co-operative functioning often leads to poor finances. The questions, developedwith input from the N.S. Department of Community Services and the Co-operative HousingFederation of Canada3, are:

1. Are all board positions currently filled?2. Was an AGM held in the last 12 months?3. Was there quorum at the AGM?4. Was the attached financial report / audit approved by the members at the AGM?5. How many employees does the co-op employ at this time? [Note that answers to this

question are addressed in the Demographics section of this report, as in previous years].6. How many board meetings were held in this fiscal year (or last 12 months)?7. How many members meetings were held in this fiscal year (or last 12 months)?8. How many members does the co-op have at this time? [Note that answers to this question

are addressed in the Demographics section of this report, as in previous years].9. How many members attended at least one educational event in this fiscal year (or last 12

months)?

The table on page 26 indicates that non-profit co-operatives had slightly better co-operativefunctioning than for-profits in all areas. That is, more of the non-profits:

• had a full board of directors.• held annual general meetings (AGMs).• established quorum and presented financial reports to the members at those AGMs.

In addition, the non-profits held slightly more board of directors meetings and more membersmeetings. They also had more members who attended an educational event during the 2003reporting period. These last items may be explained by the fact that non-profits usually have nostaff. More meetings, and possibly more training, may be required to manage non-profitco-operatives than staffed for-profit ones.


4 Results from 194 of the 256 co-operatives reporting on their 2003 fiscal year.

When we look at marketing and consumer co-operatives however the results were less clear cut. Marketing co-operatives had a slightly higher percentage of full board complements, andconsumer co-operatives had a higher percentage of AGM’s with quorum and with the member’sapproving the financial reports. Consumer co-operatives also had slightly more board meetingsalthough marketing co-operatives held slightly more members meetings and slightly highernumbers of members who attended an educational event.

This new data on co-operative functioning has been collected with the hope that it, combinedwith the financial reports submitted annually, will help provide early warning signals for thoseco-operatives that are heading toward difficulties in either their financial or co-operativefunctioning.

Co-operative Functioning4

For profit Non-profit Marketing Consumer Total

All board positions are filled 70.9% 73.1% 73.0% 71.3% 71.9%

An AGM was held 74.3% 77.8% 73.0% 77.2% 75.8%

Quorum was established at theAGM

93.6% 97.6% 95.4% 95.3% 95.4%

Financial report was approved bymembers at the AGM

87.3% 92.9% 87.7% 90.7% 89.7%

Average number of boardmeetings

5.5 5.8 5.3 5.7 5.6

Average number of membersmeetings

2.5 3.6 3.3 2.8 3.0

Average number of members whoattended an educational event

3.2 4.2 3.9 3.5 3.6

The full text of the Co-operative Associations Act is available atwww.gov.ns.ca/legislature/legc/statutes/coopassc.htm

The Regulations to the Act are available at www.gov.ns.ca/just/regulations/regs/coopgen.htm

Both are also available by contacting the Co-operatives Branch at:

Co-operatives BranchService Nova Scotia and Municipal Relations35 Commercial Street, Suite 101Truro, Nova Scotia B2N 3H9

Phone: (902) 893-6190Fax: (902) 893-6108Email: [email protected]

©October 2004

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