Credit union: Mutual or Financial Co-op set up as LTD co.
Memebers are shareholders and may place deposits with them.
Each CU is a separate legal entity. There are +400 of them with assets of €14.2bn (dec 08') loans are
€7.3bn.
Structure:
1. Governed by Credit Union Act 1997
2. Their own internal rules
3. Various Regulations via Central Bank
Registrar of Credit Unions (RCU) – Must comply with Central Bank direction.
Must be formed:
1. To promote thrift/savings
2. the provision of credit
Restricted to a 'Common Bond'
1. Occupation
2. Residence (location)
3. Employer’s Organisation
4. Member of a certain organisation
5. or any other Common Bond approved by the RCU
Must have at least 15 members >18yrs old, or if under 18 are married.
Must have set of rules that comply with CU Act 1997
Must have offices in the State.
Must maintain insurance cover to insure against loss/liability due to fraud or dishonesty of officers
(fidelity insurance). CU Financial yr. Must go from 1st October to 30th September.
Must have Employer liability, property insurance, public liability.
Common bond: member of the same household & same family has common bond of that household
even if they are not covered by the other common bond requirement. If this changes the person is
still allowed to remain a member.
Non-Qualifying member: when you don't share the common bond any more. Eg: loan approval
must be via board of directores If so then you can't borrow more than 10% of loans.
Naming: Name must have the words 'credit union' and end in 'Ltd'.
Registered Rules: C.Union Act 1997.
On payment of a fee < 79c you can get a copy of the C.U. Rules.
If refused membership you can go to District Court
Shares: requirement of 1 fully paid up share, can't require a member to have shares greater than
€10.00
Ending membership:
Resolution whereby 2/3's of members vote them out.
*must be given 21 days notice of special meeting
*have a reasonable opportunity of being heard
*can appeal to district court
Death causes an end of membership
or you hold below the minimum number of shares
Management:
Supervisory committee – 3 to 5 members,
 Keep Minutes of meetings held
 not less than twice before next AGM inspect books/docs/loans/cash accounts
 As part of this they must be happy that Act is being adhered to.
 Once before next AGM do a comparison of past to present with at least 10% of members as
sample.
 Support & advise the board
They are elected by Secret Ballot at the AGM.
can't be on Supervisory Committee if you are:
 <18yrs old
 Director of CU
 Person doing other function in CU
 A company
Can't extend beyond 3rd subsequent AGM
Normally eligible for re-election at AGM
Can be removed from majority of members at an SGM
Resigns/removed must appoint another next AGM/SGM
If committee has 3 members 1 must retire at each AGM
If 5 members 2 must retire at each AGM
Those that retire are those serving longest
If longest serving were on same day then via agreement or drawing lots.
Jobs: Meet board at least 4 times a year, they can attend all CU meetings.
Board of Directors: not < 7, not >15 & an odd number
-Decisions on loan app's
-Rate of interest on deposits
-maximum amount on loan to a member
-approval of dividends
-maximum number of shares
-decisions on investments of funds
RCU (2005) suggests the following as well: Responsible for Tech/IT systems.
Meet at least once a month & have 10 meetings a year
Interval of meetings not >6 weeks
Register of Directors must be kept by Secretary of CU
Register must be signed each year after the AGM
Nominating committee: must have 3 members, at least 1 director
must have at least 1 candidate for each vacancy at least 3 days prior to AGM
signed by a proposer and seconder – can't be a company or < 18yrs old
Credit Union Structures: