Before concluding that “for the purposes of the Act, a cooperative is a corporation, a share of the capital stock of a cooperative is a share and a member can be a shareholder,” CRA stated:
First, a cooperative is a legal person by virtue of section 3 of the Cooperatives Act, CQLR, c. C-67.2. In addition, under the definition of "corporation" in subsection 248(1), a "corporation" includes such a person. Accordingly, we are of the view that for the purposes of the Act, a cooperative is a corporation. Furthermore, the definition of "share" in subsection 248(1) provides that a share of the capital stock of a corporation includes a share of the capital of a cooperative corporation within the meaning of subsection 136(2). Finally, the definition of "shareholder" in subsection 248(1) includes a member or other person entitled to receive payment of a dividend. Consequently, we are of the view that a member of a cooperative holding a share of the capital stock entitled to receive a dividend is a shareholder for the purposes of the Act.