What happens to members if a non-profit housing co-op corporation is dissolved in Ontario?

If a non-profit housing co-op corporation is wound up, members lose their membership and occupancy rights as part of the dissolution process, since those rights exist only as long as the co-op corporation continues to operate. Members would generally be entitled to have their original membership share or deposit returned, similar to what happens when an individual member leaves voluntarily, but not a share of the value of the building or land itself, because that real estate belongs to the corporation, not to the individual members.

Because these co-ops operate on a non-profit basis, any remaining assets left after paying off the corporation's debts and obligations are generally required, both by the type of corporation involved and often by the co-op's own governing documents, to go toward another non-profit or community housing purpose rather than being distributed to individual members as a windfall. This reflects the same non-profit structure that prevented members from profiting on their membership while the co-op was operating. Members facing a potential dissolution should get information directly from the co-op's board and, where their own interests are significantly affected, independent legal advice about their specific situation and housing options.