In accordance with its constating document, a foreign cooperative (Forco1) has the following general characteristics:
(a) Forco1 is a legal entity separate from its members;
(b) Forco1 has the capacity to contract in its own name, for its own account and at its own risk;
(c) Forco1 is incorporated for an indefinite period;
(d) admission and transfer of membership in Forco1 is subject to members' approval;
(e) each member is entitled to at least one vote, and the total number of votes is in proportion to the capital accounts;
(f) members have separate capital accounts the repayment of which is subject to the approval of all members;
(g) profits are available to Forco1 and can be retained by Forco1 unless the members vote in favour of distribution;
(h) the board of directors has authority to represent Forco1; and
(i) members are excluded from any liability for any of Forco1's debts or losses.
Rulings that Forco1 will be considered a corporation and that the ownership interests in it will be shares. (The summary noted that it was not necessary that ownership interests be divided into units, and that IT-392 "still represents the CRA's position..")