What happens to a member's investment shares if they leave an Ontario co-operative?

What happens to a departing member's investment shares depends primarily on the specific co-operative's bylaws, since Ontario's co-operative structure gives co-operatives meaningful flexibility in how they handle member exits rather than imposing one fixed rule. Generally, a co-operative will redeem or repay a departing member's shares according to the terms set out in its bylaws, but this is often subject to the co-operative's financial position and sometimes to board discretion, since a co-operative can't always afford to immediately repay every departing member in full.

This matters because investment shares in a co-operative aren't necessarily as freely and immediately liquid as shares in a business traded on an open market — there may be conditions, notice periods, or a queue for redemption built into the bylaws, particularly for larger investment amounts. A member planning to leave, or an investor considering purchasing investment shares, should read the specific co-operative's bylaws on redemption carefully before assuming the shares can simply be cashed out on demand. If the bylaws are unclear or the co-operative is refusing a redemption a member believes they're entitled to, that's worth getting legal advice on.