Dear Members,
By unanimous membership approval, members at The Energy Credit Union`s recent Annual General Meeting (AGM) held on Friday, April 4th 2014 approved a special resolution passing an amendment to section 2.03 of By-Law No. 1 of The Energy Credit Union Limited. Previously, the Board of Directors determined that it is desirable in the interests of the Credit Union to raise additional capital by increasing the minimum required shareholding. This was approved and will be done in two steps. Effective April 4, 2015, no person shall become a member of the Credit Union until that person has fully paid for a total of at least ten (10) five-dollar ($5) Capital Shares, and effective April 4, 2016, no person shall become a member of the Credit Union until that person has fully paid for a total of at twenty (20) five-dollar ($5) Capital Shares.
Basically what this means to you as a member is that the Credit Union’s Capital Shares have increased. Members will have two deadlines to keep in mind. By April 4, 2015 current members will need to increase their Capital Shares to a total of $50, and by April 4, 2016 current members will need to increase their Capital Shares to a total of $100. All new members who join our credit union after April 4, 2014 will be required to have a total of twenty (20) five-dollar ($5) Capital Shares totaling $100.
Similar to your current $25 Capital Shares, these additional Capital Shares are not covered by the deposit insurance provided by the Deposit Insurance Corporation of Ontario (DICO). Also, if the Credit Union fails to maintain adequate regulatory capital, it will be unable to release the membership shares for withdrawal until adequate capital is restored. It is your Board of Director’s goal to continue to pay an annual dividend on these shares. The dividend for the preceding year will be established once our audited financial results are available and approved by the Board and accepted by the membership at the Annual General Meeting.
You may choose to work toward the new Capital Shares requirements in increments of your choosing (perhaps $5.00 per pay or some other amount) or you may choose to make one convenient lump sum deposit. Please see the attached form for payment options. You do not need to wait until the 2016 deadline in order to increase your Capital Shares to a total of $100. You may find it more convenient to increase your Capital Shares in one lump sum, all at once. Any potential dividends are paid on the total amount that the member holds in the account.
Membership shares are important to the Credit Union because your shares provide us with additional capital in order to continue to fund business expansion activities planned for the future and strengthen our overall reserve position. With more members doing business with us, we can continue to provide you with innovative products, services and added convenience. If you have any questions, please do not hesitate to contact Credit Union staff.
Thank You
The Energy Credit Union
