No. Each member will continue to have one vote even if he/she holds more than one share. This is in keeping with the credit union operating principle of democratic control…”One member, one vote”.

These are shares/equity members will own in their Credit Union. It is the money members will invest in their credit union and leave there so that they can continue to be part owners of their Credit Union. These monies will form the capital (money) of the credit union.

In the past all members’ regular savings were classified as shares. The international accounting standard (IAS) says this can no longer be done since they can be withdrawn. Savings which can be withdrawn by members at anytime must be kept separate from shares. Savings must be classified as liabilities….monies the credit union owes to members. Shares are members’ equity and represent what the member has invested n the society. Shares can be transferred and sold but not withdrawn. This will protect your Credit Union’s capital base.

Yes. This is a return on your investment. Payment of dividends will depend on the surplus that the society makes for the year. It is expected that the rate will be attractive enough to encourage members to buy more than one share.

A co-maker is a member who signs an instrument in collaboration with another member to indicate a promise to pay a financial obligation. A co-maker has the right to periodically check with the credit union on the status of the loan that he/she co-signed. The co-maker cannot be given the balance of the loan but can be informed as to whether payment is being made as stipulated in the loan agreement.

Yes. However where a beneficiary is named on your Credit Union Membership Card (in keeping with Section 100 (3) of the Co-operative Societies Act No 15 0f 1996) this nomination will supersede the provision in the Will that gives Shares to a beneficiary.

The Hands and Globe logo has symbolic and historic significance for the Credit Union Movement. The cupped hands symbolize both the financial security and support offered by the international Credit Union network, as well as the fact that the success of the Movement is in the hands of its members. The globe symbolize the worldwide scope of the Movement and suggests the impact that a truly united Movement can have on the financial development of all countries. The people within the globe represent the real focus of the Credit Union Movement. It is the human element – the harmony of people working for people – that distinguishes Credit Unions from other financial institutions.

It represents a member’s ownership of, or member’s equity in the Credit Union. This amount cannot be withdrawn while the person remains a member.

This gives the Credit Union another option for raising capital. It is also in keeping with the International Financial Reporting (Accounting) Standards that require equity to be treated in a certain way. Permanent shares represent members’ equity in the Creidt Union.

Equity Shares cannot be withdrawn but is transferable or sold to a Credit Union member.

Not necessarily. It may vary from Credit Union based on the capital and/or regulartory requirements to be met by each Credit union.

The money in regular shares can be withdrawn, subject to a notice period if necessary. Permanent shares cannot be withdrawn; they can only be sold or transferred when the member decides to give up membership.

A Permanent Shares increase the capital of the Credit Union and allows it to undertake expansion and enhancement of service to the members.

Dividends may be paid on Permanent Shares if recommended by the Board of Directors and approved by members in an annual genenral meeting once profits are made.

Permanent Shares are not intended to be used as collateral. Members have the option of using their deposits to provide collateral for their loans.

These decisions will be made by members at general meetings on the recommendation of the Board.