Shareholders’ Rights and Responsibilities

The Credit Union Act, the Statutory Rules and Orders, and the respective CU’s By-Laws and policies confer rights and Responsibilities.  As a co-owner of the Credit Union, a member is a shareholder and has certain rights and responsibilities.  An important responsibility and right is that shareholders can participate in the operation and management of the Credit Union.  It is the right of the shareholder to vote, to volunteer his or her services and to use the services offered by the Credit Union. 

Voting

An important way for shareholders to participate in the management of the Credit Union is through their power to vote.  Shareholders vote for those who will represent their interest on the BOD, CC and the SC.  They also vote on other business matters raised during the Anual General Meeting.  An Anual General Meeting must be held every year within sixty one days following the end of the CU’s fiscal year.  It is the right of all shareholders to vote for the election of members to the BOD, CC and SC.  Each shareholder has the right to one vote and likewise he/she has the responsibility to vote.  Shareholders cannot vote by proxy and regardless of quantity of shares, each shareholder is entitled to only one vote.  The voting process is democratic and in the event of equality in votes, the chairperson has the casting vote to end the tie.  Delegates are elected shareholders of the Credit Union and may unless otherwise provided by the by-laws, exercise at annual and special meetings all the powers of shareholders. 

By Laws

Credit Union by-laws and some other decisions are made based upon a 2/3-majority vote.  However, there may be issues where the Board of Directors requires that a qualified majority makes the decisions.  This qualified majority may not be a 2/3 majority.

Meetings

Shareholders have a right to receive notice of meetings, to attend the Anual General Meeting or other special meetings, and to receive a written report at the Anual General Meeting.  Shareholders also have the right to call for meetings under special circumstances.

Anual General Meeting

Every shareholder has the right to attend and vote on all questions tabled at the Anual General Meeting.  Any question tabled at the Anual General Meeting shall be decided by a majority of votes of those present.  At the meeting, voting shall be conducted by a show of hands unless voting by ballots is demanded.  The demand to vote by ballot must be requested by at least three shareholders present before there is the declaration of the results by the show of hands.  The following reflect the matters for consideration at the Anual General Meeting:
a. the report of the Board of Directors;
b. approval of the budget;
c. receipt and approval of the reports of the committees (CC and SC);
d. election of members of the Board of Directors, CC and SC and the removal of elected members from office in accordance with the by laws of the Credit Union;
e. appointment of auditors for the following year with the approval of the Registrar;
f. determination of amendments to the by-laws; and
g. Exercising final authority in all matters affecting the Credit Union.
The format of the Anual General Meeting is listed below in the order in which they occur:
a. determination of quorum from those present at the meeting;
b. recognition of apologies for those absent from the meeting;
c. reading and approval of the minutes of the last Anual General Meeting and intervening special general meetings and discussion of matters that arose from those meetings;
d. reports of the: Board of Directors, Treasurer and Auditor; CC, SC, Sub-committees, unfinished business of the Credit Union; and the budget;
e. Elections to: Board of Directors, CC, SC; Management of any registered society in accordance with the  by- law;
f. New Business;
g. Adjournment.

Dividends

Shareholders have the right to dividends and rebate in accordance with the CUA and the individual Credit Union by-laws and policies.  Shareholders have the right to vote for the approval of the rate at which the dividends are to be paid at the Anual General Meeting based on the year’s profit of the Credit Union.  Dividends may be paid up to a maximum of 8%.

Account

Upon joining the Credit Union, shareholders have an account through which they accumulate shares, make deposits, save and make loans.  Subject to by-laws, shareholders may open accounts naming two people, including themselves, as the owners of the account.  Shareholders also have the right to assign a nominee (beneficiary) for their account who will be the person to receive their benefits at the time of their death.  Credit Unions may also offer term deposits to good active shareholders that pay returns at a rate of 6% or more.

Loans

Shareholders have the right to receive loans at the same rate as all other shareholders regardless of the amount of shares that they posses, their status  or the nature of the loan (loan purpose).  Shareholders also have the responsibility to repay their loans.  A loan is considered to be delinquent immediately after a payment is missed.  A delinquent loan is reflective of a shareholder’s credit history and thus impacts on future loan request considerations.  A good credit record is built when a shareholder saves, makes payment as was agreed upon as terms of the loan, and makes payments on time.  Shareholders also need to recognize that delinquency impacts on the CU’s ability to provide more loans for other shareholders because monies loaned are monies that are pooled together from the other shareholders.  Shareholders who guarantee loans for other members should recognize that their signature makes them liable meaning that they share the responsibility of the loan.  In the event of a voluntary withdrawal from the Credit Union, this liability must be addressed before the Credit Union can release monies to the shareholder.

Policies

As owners, shareholders have the right to direct Credit Union policy by submitting suggestions which may be tabled for establishment at the AGM.  Shareholders may submit additional suggestions before the AGM to the manager, who has the obligation to review the suggestions and if considered important to table them for consideration by the Board of Directors.  It is the responsibility of the Board of Directors to direct the implementation of policies.

Reports and Notices

Shareholders have the right to receive or request an auditor’s report, to receive a written report at the AGM and to continuous education about the Credit Union.  Shareholders also have the right to receive notice of meetings to be held so that they may attend.

Participation and Services 

Shareholders have the right to participate and receive all services being offered by the Credit Union in accordance with the CUA, and the CU’s by-laws and policies.  It is the responsibility of the shareholder to make use of the services offered.  If shareholders are not using the services offered, then the Credit Union will not work.  For example, if shareholders do not save, then other shareholders cannot borrow.  Likewise, if shareholders do not borrow there will be little or no dividends to be paid.  It is therefore necessary that all shareholders save and for some to borrow.  For the Credit Union to work the services offered must be used with intelligence and shareholders should not to be delinquent with their loans, especially since this is the major way that the Credit Union generates its income.

The Credit Union

Shareholders have the right to make complaints on matters that impact the Credit Union.  As owners, the shareholders have the right to see the by-laws of the Credit Union, to call for an inquiry into the affairs of the Credit Union; to appeal against orders made by the Credit Union (if the shareholder feels that the order was dealt with unjustly then they can request redress with the Registrar); and to call for the Credit Union to be dissolved.   However along with these rights, shareholders have the responsibility to abide by the CUA, by-laws and policies of their Credit Union.  Shareholders are also responsible to provide information for the auditor to carry out audits and to comply with the cooperative principles of the Credit Union. 
As owners, shareholders are also held responsible for the liabilities of the Credit Union.  By a resolution of 2/3 of the total membership of a Credit Union, the shareholders can authorize the dissolution of the Credit Union.  Shareholders also have the right to approve borrowings, which the Credit Union may wish to undertake.  To ensure the efficient operation of the Credit Union, shareholders have the right to seek assistance and advice from the Manager of the Credit Union, CBB, or BCUL in reference to observation and compliance with the CUA.  Lastly it is the responsibility of shareholders to keep informed about the activities and information about their Credit Union and to bring new members to the Credit Union.