Cohousing-L Mailing List: securities regulations

[Jake Morrison (jake.morrison]

Louise Anthony posted:
 >   Our project manager, Sheri Rosenthal,
 > has been advised by a lawyer that if we incorporate and then offer
 > memberships to the public, that we will be, in effect, trading in
 > securities, and would be subject to regulation.  

   In Ontario Canada this would be true if you incorporated as a public 
corporation or if you incorporated as a co-operative corporation with 
_share_ equity (and there were more than just a few share-holders). If, 
however, you incorporated as a co-op corp with _loan_ equity it would 
not be true. Perhaps there are some similar distinctions in N.C.
   (I am not a lawyer but the above is my understanding from having read 
the co-op act and having talked with a few people about the corporations 
act)

Good luck,   Jake



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<Jake Morrison   Jake.Morrison [at] bbs.Synapse.net   Terra Firma Housing>
<769 Bayview Dr.; Constance Bay, Ont, K0A 3M0  voice: (613) 832-1458>
<BBS: MindBender's BBS       FidoNet 1:163/112        (613) 832-4097>
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