At the Special General Meeting of Marigot Co-operative Credit Union held at the William Thomas Hall at Weirs, Marigot on 10th December 2006, the By Laws were revised and a major Resolution were passed by the Membership for introducing the Member Share Capital. The members present were given a clear insight of what is Members Share Capital. Over the coming months Management intends to embark on a members education drive to help the General Membership get a clear understanding about Member Share Capital.
Here are answers to some of the most commonly asked questions that are expected to come from members in the given situation.
These are Shares /Equity members will own in MCCU. It is the money members will invest in their Credit Union and leave there so that they can continue to be the owners of MCCU. These monies will form the Capital Base of the Credit Union.
In the past all members' regular savings were classified as shares. International Accounting Standards (IAS) state this can no longer be done since they can be withdrawn. Savings which can be withdrawn by members at anytime must be kept separate from Shares, and be classified as Liabilities:- monies the Credit Union owes to members. Shares are Members Equity and represent what the member has invested in the Society. Shares can be transferred or sold but not withdrawn. This will help protect MCCU's capital base.
The price per Share is now $50. Persons wishing to become members of MCCU now have to buy at least one $50. Share.
No. Shares cannot be used as security for loans.
You will remain members once you have at least $50 in your Share Account. You will be given your Share Book and you can pay directly for additional Shares from any Cashier over the counter or you can use money form your savings or deposit account to buy more shares.
It was over two and a half (2 ½) years ago that Credit Unions in Dominica and in deed the region have been challenged and by extension forced to introduce Member Share Capital for the purpose of complying with International Accounting Standards (IAS). This is to bring Credit Unions in line with other recognized financial institutions method of preparing their Financial Statements and accounting for what the owners contribute to the Capital base of their institution. We have been told that we can no longer treat Credit Union Members Savings different from other financial institutions and classify it as Shares Capital since Members can withdraw all or part of such savings or add to them any time as they wish.
However, your Board or Management could not introduce this vital change in your Credit Union Structure without your consent and approval. After calling you to a Special General Meeting on December 10th 2006 at which the appropriate clauses of your revised By Laws were restructured to accommodate such a change and the necessary Resolution introduced and passed the change became effective as of that date (10th December 2006).
As we introduce these changes to meet International Standards, you will see it reflected in your account. By December 31st 2006 an amount of fifty dollars EC ($50.00) which represents the value of one (1) share at per value, was automatically transferred from your Regular Savings and placed in a Member's Share Capital account. You will be issued with a Share Pass Book which will be your legal record. This Share is your investment in your Credit Union and makes you a legal owner. It cannot be withdrawn.
If your savings is less than fifty ($50) dollars you cannot have a share. We encourage you to build it up so that you can remain a member. From December 31st 2006 you would no longer be a member of Marigot Co-operative Credit Union if you did not have at least one (1) share of ($50.00). This means that you are not able to take loans and have certain privileges like other members. We kindly ask for your support and patience as we implement the new International Standards which will help boost the image of our Credit Union and be to your benefit. Let us all commit ourselves to investing in our Credit Union by buying some shares on a continuous basis every year thereby ensuring that our Credit Union Capital Base continues to grow and satisfy our selves that we are contribution to the further safety and soundness of this great institution of which we all can be firstly proud.