Ordinary shares of UFA (United Farmers of Alberta Co-operative Limited) have a par value of $5.00 each. This par value represents the fixed nominal value of each share as defined by the co-operative.
Understanding UFA Share Value and Purpose
Unlike shares in publicly traded companies, UFA ordinary shares are typically not bought and sold on a stock exchange, meaning their "worth" is tied directly to their par value rather than fluctuating market prices. This fixed value is crucial for understanding their role within a co-operative structure.
Key characteristics of UFA ordinary shares include:
- Fixed Value: Each share is set at a par value of $5.00, which is often the price at which new shares are issued or redeemed by the co-operative.
- No Financial Return: It is important to note that these shares provide no return thereon. This means members holding UFA ordinary shares do not receive dividends, interest, or capital gains from these shares. Their purpose is not for financial investment return but rather to signify membership and patronage within the co-operative.
- Membership Equity: These shares represent a member's equity contribution to the co-operative, supporting its operations and services to its members.
Membership and Voting Rights
While owning UFA shares signifies membership, specific conditions apply to exercise voting rights on matters concerning the co-operative. To be eligible to vote, a member must demonstrate active participation by meeting a specific purchase threshold:
- Voting Eligibility: A Member must have purchased a minimum of $100 in products or services from UFA during the most recent period of January 1 to September 30.
This requirement ensures that voting rights are held by active patrons who regularly engage with UFA's business.
Summary of UFA Share Characteristics
For clarity, here's a summary of the key details regarding UFA ordinary shares:
| Characteristic | Detail |
|---|---|
| Type of Share | Ordinary Share |
| Par Value | $5.00 per share |
| Financial Return | None (no dividends, interest, or capital gains) |
| Purpose | Membership equity within the co-operative |
| Voting Eligibility | Minimum $100 purchase from Jan 1 – Sep 30 |
In essence, the worth of UFA shares is their established par value of $5.00 per share, serving as a membership stake rather than a traditional investment vehicle yielding financial returns.
