Proposed Rule Changes for AGM 2022

We review our rules regularly – as we continually look to improve our products, services, and processes.

Please see below an overview of the proposed rule changes for our 2022 AGM – including a summary of the change, original and proposed new rule.

Summary of Change

To reduce the age a member can join and start saving with the credit union, from 18 to 16 years old to reflect the age at which some of our potential members enter full time employment.

Existing Rule

  • 14. A junior saver, who is eligible for membership of the Credit Union according to Rule 7 of these Rules, shall convert to full membership of the Credit Union upon reaching the age of 18 provided that no person that has a deposit in a Child Trust Fund account or a Junior ISA is eligible for membership of the Credit Union until they have reached the age of 18 years.

Proposed Change

  • 14. A junior saver, who is eligible for membership of the Credit Union according to Rule 7 of these Rules, shall convert to full membership of the Credit Union upon reaching the age of 16 provided that no person that has a deposit in a Child Trust Fund account or a Junior ISA is eligible for membership of the Credit Union until they have reached the age of 18 years.

Summary of Change

In order to reflect the cost of administering dormant accounts as well as to actively manage the balances of those members which whom we have lost contact, the changes will allow the Credit Union to apply a small annual charge to dormant accounts – those on which there has been no activity for 12 months.

Before an account reaches this point, the Credit Union will have attempted contact with the individual multiple times via all available communication methods. The introduction of the fee will also allow resource to be devoted to tracing members with larger balances.

Existing Rule

  • 31. The Board of Directors shall have the discretion to charge an annual administration fee on each dormant account, an amount not to exceed £5 or any such reasonable amount sufficient to cover the administration costs of membership specified by the Board of Directors from time to time and agreed by the Members at the annual general meeting.
  • 32. In relation to a Member who does not comply with the minimum shareholding requirement as set out in Rule 46, but whose account is dormant, the Credit Union may alert the Member to the dormancy by contacting the Member in Writing at their last known Address notifying the Member that there have been no transactions on their account (or their accounts if they have more than one) during the last 12 months, and providing the Member with a six week period to determine the future use of their account(s).
  • 34. If the Member does not reactivate or close their account(s) within six weeks of the Credit Union issuing the communication, the Board of Directors shall have the discretion to:
    • a. Hold any monies within the account(s) of such Member in a suspense account pending the Member’s subsequent withdrawal of their money, or activity on their account;
    • b. Charge the annual administration fee;
    • c. Expel the Member from membership of the Credit Union in accordance with Rule 24.

Proposed Change

  • 31. The Board of Directors shall have the discretion to charge an annual administration fee on each dormant account, an amount not to exceed £10 or any such reasonable amount sufficient to cover the administration costs of membership specified by the Board of Directors from time to time and agreed by the Members at the annual general meeting.
  • 32. In relation to a Member who does not comply with the minimum shareholding requirement as set out in Rule 46, but whose account is dormant, the Credit Union will alert the Member to the dormancy by contacting the Member in Writing at their last known Address notifying the Member that there have been no transactions on their account (or their accounts if they have more than one) during the last 12 months, and providing the Member with a two week period to determine the future use of their account(s).
  • 34. If the Member does not reactivate or close their account(s) within two weeks of the Credit Union issuing the communication, the Board of Directors shall have the discretion to:
    • a. Hold any monies within the account(s) of such Member in a dormant account which does not attract dividend pending the Member’s subsequent withdrawal of their money, or activity on their account;
    • b. Charge the annual administration fee;
    • c. Expel the Member from membership of the Credit Union in accordance with Rule 24.

Summary of Change

To reduce the time from a member’s total savings falling below the minimum required (£5) to them being removed from membership from 6 months to 2 weeks. This occurs when a member has become dormant e.g. they have not made any deposits in a 12 month period. The member will have received several notices asking them to determine the future of their account.

Existing Rule

  • 46. The minimum shareholding requirement to remain in membership of the Credit Union shall be a sum not exceeding £5.00 as may be determined by the Board of Directors. The Board of Directors shall have the discretion to withdraw membership from any Member whose account has not been brought up to the minimum Non-Deferred Shareholding requirement within six months of admission to membership, or any Member whose account is reduced below the minimum Non-Deferred Shareholding, through adopting the following procedure:
    • a. Providing notice in writing to their last known Address
    • b. The notice shall require the Member to increase their shareholding to the minimum required or withdraw their Non-Deferred Shares within 6 months of the date of the notice
    • c. If the Member has not taken action under (b) above the balance of the account may be declared by the Board of Directors to be forfeited to the Credit Union and membership shall be withdrawn on the same date.

Proposed Changes

  • 46. The minimum shareholding requirement to remain in membership of the Credit Union shall be a sum not exceeding £5.00 as may be determined by the Board of Directors. The Board of Directors shall have the discretion to withdraw membership from any Member whose account has not been brought up to the minimum Non-Deferred Shareholding requirement within six months of admission to membership, or any Member whose account is reduced below the minimum Non-Deferred Shareholding, through adopting the following procedure:
    • a. Providing notice in writing to their last known Address
    • b. The notice shall require the Member to increase their shareholding to the minimum required or withdraw their Non-Deferred Shares within two weeks of the date of the notice
      c.
      If the Member has not taken action under (b) above the balance of the account may be declared by the Board of Directors to be forfeited to the Credit Union and membership shall be withdrawn on the same date.

Summary of Change

To amend the notification of Members’ Meetings from being via notices placed in office to via email which will ensure more members are aware of meetings.

Existing Rule

  • 81. At least 1 month but not more than 90 days before the date of a general meeting, Members will be advised by the placing of notices in prominent areas of each credit union office, outlining the date, time and place of the meeting. In addition, details will be posted on the credit union website, and the Auditor will be advised.

Proposed Change

  • 81. At least 1 month but not more than 90 days before the date of a general meeting, Members will be advised by email, outlining the date, time and place of the meeting. In addition, details will be posted on the credit union website, and the Auditor will be advised.

Summary of Change

To notify members and invite nominations for Director via email.

Existing Rule

  • 99a. Members will be notified that elections are taking place via the credit union website and a notice inviting nominations for Director and Non-Executive Scrutiny Panel vacancies which will be displayed in each office. The closing date will be advised within the notice but will be no later than 1 month before the AGM date to allow time for due diligence and eligibility checks to take place. Nominations should be submitted to the Nominations Committee.

Proposed Change

  • 99a. Members will be notified that elections are taking place via the credit union website and a notice inviting nominations for Director vacancies which will be emailed to members. The closing date will be advised within the notice but will be no later than 1 month before the AGM date to allow time for due diligence and eligibility checks to take place. Nominations should be submitted to the Nominations Committee.

Summary of Change

To introduce term limits for directors and strengthen succession planning.

Existing Rule

  • 105. On election, Officers will be appointed for a term of three years. At the third anniversary AGM after their appointment, they will retire but will be eligible for re-election.

Proposed Change

  • 105. The term of office for a director shall be three years from the date of election after which time the director shall retire. Subject to approval by the Nominations Committee, a retiring director shall be eligible for re-election for a maximum of two further terms of three years. In exceptional circumstances the Board may allow a director to continue for one further fourth term before stepping down from the Board. This Rule shall apply to all terms that commence from the 2023 AGM onwards and not retrospectively.

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