By unanimous membership approval, members at The Energy Credit Union`s recent Annual General Meeting (AGM) held on Friday, April 16th 2021 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 by members and will be done in four steps.
Over the next 4 years, the Energy CU capital shares will be increased to a total of $200, up from the previous $100. This will be done in stages of $25 increments. Each April, from now until 2024, all current member accounts and new member accounts will need to have the required amount of capital shares in their account as per the special resolution approved at the 82nd AGM on 16 April 2021. So this year, all new accounts opened at the Energy CU will require $125 capital shares. Current members are asked to contact us to increase your current capital shares to the required $125. Don’t worry if you forget, on June 18, any member who has not yet topped up their capital shares will have it done automatically for them.
Depending on your own personal situation, you are able to work toward the new annual Capital Shares requirements increase increments of your choosing (perhaps $5.00 per pay or some other amount). 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.
Members should note that, these Capital Shares (and Additional Shares) are not covered by the deposit insurance provided by the Financial Services Regulatory Authority of Ontario (FSRA). Also, in the unlikely event of the Credit Union failing 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. This it was announced that a dividend of 3.65% will be paid on all CU shares!
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.
If your $125 Capital Share investment isn’t enough for you, why not purchase Additional shares (up to $1000) and take advantage of this great investment opportunity? These additional shares allow the CU to increase its capital position and grow stronger together.