Rules

RULES OF PCS CREDIT UNION LIMITED

INDEX

NAME, REGISTERED OFFICE, OBJECTS AND POWERS
1.    Name
2.    Registered Office
3.    Objects
4.    Social goals
5.    Powers

QUALIFICATIONS FOR, AND ADMISSION TO, MEMBERSHIP
6.    Qualification
7.    Membership of the credit union
8.    Age of members
9.    Joint accounts
10.  'Non-qualifying' membership
11.  Admission to membership

JUNIOR MEMBERS AND JUNIOR SAVERS
12.  Junior Members
13.  Junior Savers
14.  Maximum deposits

CESSATION OF MEMBERSHIP
15.   Cessation of membership
16.   Withdrawal of shares
17.   Expulsion from membership
18.   Effective date of expulsion
19.   Appeal against expulsion
20.   Members exceed permitted maximum
21.   Liability of members
22.   Notice of withdrawal
23.   Inactive accounts

SHARES
24.   Shares
25.   Maximum shareholding
26.   Maximum shareholding - joint accounts
27.   Withdrawal of shares
28.   Members ceasing to hold one share
29.   DELETED

LOANS TO MEMBERS
30.   Loans to members
31.   Provisions for the granting of loans
32.   Maximum loans
33.   Interest rates
34.   Application forms
35.   Guarantees for loans
36.   Security required
37.   Loans to officers, committee members, collectors and employees
38.   Retention of loan records
39.   Insurance on loans
40.   Liability for loans

RECOVERING LOANS FROM MEMBERS
41.   Recovery of debt

APPLICATION OF PROFITS
42.   Calculation of surplus
43.   General reserve allocation
44.   Distribution of surplus
45.   Dividend
46.   Interim dividends and differential rates
47.   Rebate of interest
48.   Payment of dividend to members

MEMBERS' MEETINGS
49.   Entitlement to attend
50.   Notice of meetings
51.   Quorum
52.   Adjournment

ANNUAL GENERAL MEETINGS
53.   Timing of meetings
54.   Order of Business
55.   Converting an AGM to a SGM

SPECIAL GENERAL MEETINGS
56.   Special general meeting called by committees
57.   Special general meeting called by members
58.   Business to be conducted at special general meetings

VOTING RIGHTS AND PROCEDURES
59.   Voting rights
60.   Voting
61.   Chairperson and casting vote

ELECTION PROCEDURE
62.   Nominations for the Committee
63.   Nominations taken at meeting
64.   Ballots
65.   Election results
66.   Number of nominees not exceeding vacancies

SUITABILITY OF CERTAIN PERSONS TO HOLD OFFICE
67.   Persons under 18 years
68.   Prohibition of certain persons

COMMITTEE AND SUB COMMITTEES
69.   Notice of meetings
70.   Number and election of committee members
71.   Term of office
72.   Failure to attend meetings
73.   Removal of committee member
74.   Filling of casual vacancy
75.   Regularity of meetings
76.   Quorum
77.   Voting
78.   Delegation of powers
79.   Validation of actions
80.   Remuneration
81.   Powers
82.   Election of officers and sub committee members
83.   Chairing of meetings

LOAN COMMITTEE AND LOAN OFFICER(S)
84.   Loan Policy
85.   Loan Committee and Loan Officer(s)
86.   Responsibilities of Loan Committee
87.   Appointment and duties of Loan Officer(s)

INTERNAL AUDIT AND COMPLIANCE COMMITTEE AND INTERNAL AUDIT AND COMPLIANCE OFFICERS
88.   Composition of internal audit and compliance sub committee
89.   Chair and Secretary
90.   Frequency of meetings
91.   Reports to Committee and general meetings
92.   Powers
93.   Schedule of inspection
94.   Convening a special general meeting
95.   Appointment of internal audit and compliance officer
96.   Duties of internal audit and compliance officer
97.   Powers of internal audit and compliance officer

SECRETARY, TREASURER AND ASSISTANT TREASURER
98.   Role of Secretary
99.   Role of Treasurer
100. Appointment of assistant treasurers

OFFICERS, COMMITTEE MEMBERS AND EMPLOYEES
101. Withdrawal from meetings 
102. Confidentiality 
103. Indemnity of officers, committee members and employees 
104. Failure to perform duties 

ACCOUNTS, AUDIT AND ANNUAL RETURNS
105. External auditor 
106. Access to accounts 
107. Preparation of accounts 
108. Display of balance sheet

SUPPLY OF COPIES OF AUDITED ACCOUNTS, RULES AND OTHER DOCUMENTS
109. Supply of documents

REGISTER OF MEMBERS AND INSPECTION OF ACCOUNTS
110. Maintenance of a register
 
INSPECTION OF RECORDS
111. Rights of inspection

PASSBOOKS, STATEMENTS AND TRANSACTIONS
112. Issuing of passbooks and statements of account·
113. Records of transactions
114. Authority to make transactions
115. DELETED
116. DELETED

RETENTION OF RECORDS
117. Retention of records

TRANSMISSION OF PROPERTY IN THE CREDIT UNION TO A BENEFICIARY

118. Transmission of property 

AMENDMENT TO RULES
119. Amendment of rules
120. Registering amendments

CHANGE OF REGISTERED OFFICE
121. Change of Registered office

USE OF NAME AND SEAL
122 Name of credit union and seal

DISSOLUTION OF THE CREDIT UNION
123. Application to dissolve the credit union
124. Disposal of assets

COMPLAINTS AND DISPUTES
125. Credit union's complaints procedure
126. Referring a complaint to Financial Ombudsman Scheme
127. Referring a complaint to a court of law

INTERPRETATION


NAME, REGISTERED OFFICE, OBJECTS AND POWERS 

1. The name of this credit union shall be PCS Credit Union Limited  herein referred to as "the credit union". 

2. The registered office of the credit union shall be at 160 Falcon Road, London SW11 2LN or at such other place as may from time to time be determined by the committee in accordance with Rule 121.

3. The objects of the credit union shall be:-
(a) the promotion of thrift among its members by the accumulation of their savings;
(b) the creation of sources of credit for the benefit of its members at a fair and reasonable rate of interest;
(c) the use and control of members savings for their mutual benefit; and
(d) the training and education of members in the wise use of money and in the management of their financial affairs.

4. The credit union may, by resolution of its Committee adopt one or both of the following additional social goals within its policies: 
(a) to contribute towards the alleviation of-poverty within the community;
(b) to contribute towards the economic regeneration of the community provided that these are only pursued within the objects of the credit union in accordance with Rule 3.

5. The credit union shall have full power, subject to law, regulations and permissions granted to it by the Regulator, to do all things necessary or expedient for the accomplishment of its objects. 


QUALIFICATIONS FOR, AND ADMISSION TO, MEMBERSHIP

6. 6.1 The qualification for admission to membership of the credit union shall be:
(a) a member of the Public and Commercial Services trade union (PCS); or
(b) an associated & retired member of PCS (includes PCS staff or full time officers of PCS);
or
(C) a life member of PCS
so that in consequence thereof there shall be a common bond between all the members.

6.2 A person who is a member of the same household as, and is a relative of, a member of the credit union who fulfils the qualification for admission in paragraph 6.1 of this rule directly, shall be deemed to be qualified for and shall be eligible for membership. 

7. Subject to and in accordance with rules 7 -23 the membership of the credit union shall consist of
(a) the signatories to the application to register the credit union, who must be qualified for membership in accordance with Rule 6; and
(b) persons who have been admitted to membership in accordance with Rule 11.

8. The minimum age for full membership is 18 years.

9. Only individuals shall be members of the credit union. However, two individuals who qualify for, obtain and continue to hold individual membership, under Rule 6 may hold a joint account. The credit union shall agree the tenns of operating the account in consultation with the two members. Both members shall be held jointly and severally liable for repayment of loans (Rule 31.3.)

10. A member of the credit union who ceases to qualify for membership (non-qualifying member) may retain his or her membership and voting rights in the credit union and continue to acquire shares and to receive loans provided that the total number of persons permitted to continue as members of the credit union by virtue of this paragraph shall not at any time exceed such number as may be prescribed by law, of the total membership of the credit union.

11. An applicant for membership may be admitted to membership only when:

(a) It has been determined that s/he fulfils the common bond qualification for entry to membership: and
(b) s/he has completed a membership application form: and
(c) s/he has provided his or her date of birth and sufficient evidence to prove his or her identity and address in order to comply with Money Laundering Regulations and the law; and
(d) the Committee is satisfied that s/he understand the principles and working of the credit union and has discussed these with a member of the Committee or a person delegated by the Committee: and
(e) the members of the Committee present at the meeting at which the application is considered have determined that s/he is eligible for membership in accordance with Rules 6 -10 and has approved his or her application by an affirmative vote; and
(f) s/he has paid an entrance fee of an amount determined from time to time by the Committee (not exceeding £5) which fee shall be returned to him or her if the application is refused; or s/he has paid an annual fee of an amount that may be determined from time to time by the committee (not exceeding £5) which shall become payable each year on 1 st October, which fee shall be returned to him or her if the application is refused; and
(g) s/he has paid for at least one share in the credit union.


JUNIOR MEMBERS AND JUNIOR SAVERS

12. Young people aged 16 but under 18 years of age may be admitted to membership of the credit union. However, junior members may not:
(a) receive loans
(b) be an officer or committee member of the credit union
(c) act as a guarantor for a loan

13. Children under the age of 16 (Junior Savers) may join the credit union if they are qualified for membership in accordance with Rule 6.

14. Deposits from junior savers under Rule 13 must not exceed the maximum as may be prescribed by law.


CESSATION OF MEMBERSHIP

15. A person shall cease to be a member of the credit union:
(a) on death; or
(b) on his/her withdrawal from the credit union in accordance with Rule 16; or
(c) on ceasing to hold at least one fully paid share in the credit union; or
(d) on expulsion from the credit union in accordance with Rules 17 to 20.

16. Subject to Rule 22, a member may withdraw from membership at any time by applying for and receiving his or her shareholding in full in the credit union.

17. Subject to Rule 19 a member may be expelled from the credit union by resolution of a majority present at a meeting of the Committee for any grave and sufficient reason including the following:

(a) wilful or persistent breach of, or refusal to comply with these rules and the policies of the credit union;
(b) divulging confidential information obtained by reason of being an officer or committee member of the credit union;
(c) deceiving the credit union with regard to the purpose of money borrowed therefrom and its subsequent use;
(d) maliciously and knowingly spreading false reports about the management of the finances of the credit union;
(e) wilfully making an entry, or erasure in, or omission from any record or return of the credit union with the intention to falsify it;
(f) using the credit union as a vehicle for committing an offence constituting money laundering as defined in the Money Laundering Regulations 1993;
(g) committing an offence of dishonesty against the credit union, wilfully destroying or damaging records or other property of the credit union, or passing forged notes or other instruments through the credit union or
(h) if, after admission, any declaration in his or her application for membership is found to be wilfully false or misleading or any defect is discovered in his or her qualifications for membership at the time of his or her admission which in the opinion of the Committee is of such consequence as to justify expulsion;
provided that the member shall be given ten days notice of the meeting and of the intention to expel him or her and shall be given an opportunity of being heard or being represented at the meeting. Any notices required to be given under this Rule and Rule 19 below shall be posted by registered post or recorded delivery to the last notified address.

18. Any subsequent notice of expulsion to the member shall not become effective until 30 days after the date of service of such notice of expulsion or until the determination of his or her appeal under Rule 19, if any, whichever is the later. The notice of expulsion shall be served by registered post or recorded delivery and shall include a reference to Rule 19.

19. Where a member wishes to appeal against expulsion, the Committee shall, upon written request of a member on whom notice of expulsion has been served in accordance with Rule 17 received not later than 30 days after the date on which such notice has been served on him or her, convene a special general meeting of the members to consider the matter of his or her expulsion. Such member shall have the right to be represented and heard at such special general meeting. The special general meeting shall have the power, by a majority decision, to confirm the member's expulsion or to direct that s/he shall remain a member of the credit union.

20. Where it is brought to the attention of the Committee that, whether as a result of inadvertence or otherwise the proportion of non-qualifying members is greater than that specified by the proviso to Rule 10, the Committee shall take any steps which are practicable, without resorting to expulsion of members, to bring matters into conformity with the aforesaid rules. If the Committee cannot find any such practicable steps which will bring matters into conformity with these rules, it shall expel a sufficient number of members to bring matters into conformity with these rules. The members so expelled shall be those who, according to the evidence available to the Committee, were the latest to cease to be within the common bond of membership. The provisions of Rule 19 shall not apply in the case of a member who is expelled under this rule.

21 . Withdrawal or expulsion of a member from the credit union shall not relieve such member from any liability thereto existing at the time of his or her withdrawal or expulsion.

22. The amount in shares, together with any dividends due by the credit union to the member who withdraws or is expelled, shall be paid to him or her as funds become available, but only after all moneys due by him or her to the credit union have been deducted, provided however, that payment of such moneys or any part of them may be postponed until the end of a period of sixty days beginning on the day following expulsion or notice of intention of withdrawal.
No payment of any description shall be paid to such a member unless all his or her liabilities to the credit union have been fully discharged.

23. 23.1 If a member has not
(a) taken part in the business of the credit union, or
(b) subscribed to the share capital of the credit union, throughout the preceding 12 months, the account may be deemed to be dormant and the credit union may transfer the shares to a suspense account, together with any dividend credited to the members account.

23.2 The credit union shall not cancel or forfeit any member's shares unless it has;
(a) sent a letter to the member's last known address informing him or her of this possible course of action and that he or she has three months in which to contact the credit union and either reactivate the account or close it. If after the three-month period no response has been received, sums of £5 or less will be forfeit to the credit union.
(b) If after a period of six years, the credit union has been unable to trace the member, the Committee may declare the share balance to be forfeit to the credit union and the account closed.


SHARES

24. 24.1 The shares of the credit union shall be of the value of £1.

24.2 Shares shall be withdrawable subject to the provisions of Rule 27. 

24.3 Shares shall not be transferable and the credit union shall not issue to a member a share certificate denoting ownership of a share.

25. No member shall have, or claim an interest in, shares of the credit union exceeding the sum or limit as may be prescribed by law. This rule applies to the sum of all accounts held by a member with the credit union. For the purpose of these rules, the total shareholdings shall be that shown in the most recent audited balance sheet to have been sent to the regulator.

26. The maximum shareholding limit in a joint account shall be double the limit of an individual account. For the purpose of calculating an individual's shareholding, the amounts held separately in an individual and joint account shall be amalgamated and shall not exceed the amount set by law (Rule 25.)

27. 27.1 Subject to 27.2, money paid in on shares or instalments for the acquisition of shares may be withdrawn, but the credit union may require up to sixty days' notice of withdrawal from a member. 

27.2 If a withdrawal of shares would reduce a member's paid up shareholding in the credit union to less than his or her total liability (including contingent liability) to the credit union, whether as a borrower, guarantor or otherwise, the withdrawal shall be permitted only at the discretion of the committee.

28. Written notice to his or her last notified address may be sent to any person who ceases to hold one share in the credit union after s/he has been admitted to membership which notice may provide that unless his or her share balance is increased to £1 or withdrawn within 30 days of the date of the notice, such balance may be declared by the Committee to be forfeit to the credit union.

29. DELETED


LOANS TO MEMBERS

30. The credit union may make a loan to a member who is 18 years or over upon such security (or without security) and terms as these rules provide.

31. 31.1 A loan shall not be made by the credit union to a member unless the loan is approved by all the members present at the loan committee and the number of committee members present constitutes a majority thereof; or unless the loan is approved by a designated loan officer as provided by Rule 87.

31.2 The Credit Union shall not at any time make a loan to a member if the making of such a loan would bring the total amount standing on loan to members above such limit as may be prescribed by law or by the Regulations.

31.3 Both members of a joint account shall be held jointly and severally liable for the repayment of loans.

32. Subject to Rule 31, the Committee shall determine from time to time the maximum amount that may, at a particular time, be on loan to a member either by way of secured loans or by way of unsecured loans, and such limits shall apply equally to all members.

33. The rate of interest chargeable on loans shall be determined from time to time by the Committee, and shall not at any time exceed the rate as may be prescribed by law on the amount of the loan outstanding at the time and shall in every case include all administrative charges and other expenses incurred in making the loan.

34. Each application for a loan shall be submitted on a form provided by the credit union and shall state the purpose for which the loan is required, the security (if any) in respect thereof and such other information as may be required.

35. A credit union member may use his or her shares to guarantee another member's loan, except that a member who is under the age of 18 may not act as a guarantor.

36. The Committee shall determine the security, if any, required for each loan.

37. An officer, committee member, collector or employee of the credit union and their relatives may, if a member of the credit union, be granted a loan by the credit union in accordance with these rules, providing that:
(a) the member or relative has no involvement in the processing or granting of the loan.
(b) the member applying for the loan is not present during the discussion of his or her application.
(c) the internal audit committee shall be informed of every such application within 14 days of its approval.

38. All applications for loans and loan registers shall be filed and retained in accordance with the provisions of Rule 117.

39. The Committee may enter into any arrangements with a person carrying on the business of insurance for the purpose of providing insurance coverage on the liability of any member to the credit union.

40. Any person knowingly responsible for the issue of a loan to a person other than a member of the credit union shall be jointly and severally liable with the borrower to the credit union in the amount of the loan and accrued interest.


RECOVERING LOANS FROM MEMBERS

41. 41.1 The committee is responsible for ensuring that suitable policies and procedures are established to ensure the repayment of all debts due to the credit union.

41.2 All sums due from any member shall be recoverable from him or her, his or her executors or administrators, as a debt due to the credit union.

41.3 The credit union shall have a lien on all shares of a member for any debt due to it by the member or for any debt which the member has guaranteed, and may set off any sum standing to the member's credit, including any shares, interest rebate and dividends, in or towards the payment of such debt.


APPLICATION OF PROFITS

42. In ascertaining the profit or loss resulting from the operations of the credit union during any year of account, all operating expenses in that year shall be taken into account (including payment of interest) and provision shall be made for depreciation of assets, for tax liabilities and for bad and doubtful debts.

43. The credit union shall out of its profits each year establish and maintain general reserves in accordance with the Regulations.

44. The credit union may then allocate any remaining profits as follows:

(a) a voluntary transfer to general reserves;
(b) subject to Rules 45 (and 46, if applicable) as a payment to members of dividends on the amount of their paid-up shares;
(c) subject to Rule 47, as a rebate of interest paid by or due from members who have received loans from the credit union; and
(d) after a dividend and/or rebate of loan interest has been paid, a sum for social, cultural or charitable purposes.

45. A dividend on members' shares, at a rate not exceeding eight per cent per annum (or such other maximum rate as may be prescribed by law) may be recommended by the Committee for declaration by the members at an annual general meeting. Such dividend shall be declared on all full shares held during the preceding financial year, a portion of a month being disregarded for the purpose of entitlement to dividend. Shares held for less than the full year shall be entitled to a proportional part of the dividend. No dividend declared and authorised for payment by the members in general meeting shall exceed the rate recommended by the Committee.

46. At each annual general meeting the members may be formally asked to delegate to the Committee such powers as may be necessary to declare interim dividends and establish differential rates on different terms savings accounts. This delegation can only take place subject to regulatory restrictions placed on the operation of the credit union.

47. Provided that a dividend has been recommended by the Committee in accordance with Rule 45, a rebate of interest proportional to the interest paid by or due from members during the year of account, may be recommended by the Committee for declaration by the members at the annual general meeting. No rebate of interest declared and authorised by payment by the members in a general meeting shall exceed the rate recommended by the Committee.

48. Dividends and interest rebates due to any member may be placed to the credit of his or her share balance and shall so be placed in any case where there is any money due from him or her to the credit union whether as borrower, guarantor or otherwise in excess of his or her shareholding in the credit union, unless the application of such a dividend or interest rebate would increase his or her share holding in the credit union to an amount exceeding the maximum shareholding permitted by Rule 25.

(a) If a member leaves the credit union before a dividend is declared and/or credited to their account, and does not claim the dividend within 3 calendar months of the dividend being declared it will automatically be donated to the credit union.


MEMBERS' MEETINGS

49. Meetings of the credit union shall be either annual general meetings or special general meetings. Every member holding at least one share shall be entitled to attend such meetings on production of such evidence as the Committee may from time to time determine.

50. 50.1 At least 21 days before the date of a meeting of members, the secretary shall cause written notice of the date, time and place of the meeting to be given to each member; except that if the credit union maintains any office or place of business that is readily accessible to members and wherein regular business hours are maintained and the committee so determines, notice of any meeting may also be given by posting a notice of the meeting in a conspicuous place in every office or place of business of the credit union where it may be read by the members, including any internet site operated by the credit union, at least 21 days prior to such a meeting. Written notice shall also be given to the auditor.

50.1.1 Where the committee has authorised proxy voting, at least 35 days before the date of the meeting the secretary shall cause a written preliminary notice of the date of the meeting to be sent to each member with a requirement to submit nominations of directors and resolutions to the registered office at least 27 days before the meeting.

50.1.2 At least 21 days before the meeting, the secretary shall cause a written notice of the date, time and place of the meeting to be sent to each member, together with a voting paper listing the nominations for directors and resolutions to be discussed at the meeting.

50.1.3 Those voting by proxy must ensure that completed voting papers are received in the registered office, at least three days prior to the meeting. 

50.2 When notice of a meeting has been given in accordance with Rule 50.1, the accidental omission to give notice to any member thereof or the non-receipt of the notice by any member shall not invalidate any resolution passed or any proceedings taken by the meeting.

51. Ten per cent of the members of the credit union or 15 members, which ever is the lesser number, shall constitute a quorum for members' meetings provided that if the total membership is fewer than 49 the quorum shall be five members. A meeting may proceed to business if a quorum is present within half an hour after the time fixed for the commencement of the meeting. No meeting shall become incompetent to transact business from the want of a quorum after the chair has been taken. If a special meeting convened on the requisition of members is inquorate, it shall be dissolved.

52. 52.1 Meetings of members called by the Committee may, for good and sufficient reason, at the discretion of the chairperson, be adjourned.

52.2 The provision concerning notice, voting and quorum set in these rules shall apply to an adjourned meeting of members and no business shall be transacted at such a meeting other than business appearing on the agenda and left unfinished at the meeting at which the adjournment took place.

52.3 If an annual general meeting or special general meeting convened by order of the Committee or internal audit and compliance committee is inquorate, it shall stand adjourned to a later date within 30 days, when the meeting so adjourned may proceed to business whatever is the number of members present.


ANNUAL GENERAL MEETINGS

53. The annual general meeting shall be held within 6 months of the end of the financial year at such date, time and place as the Committee may by resolution determine.

54. The order of business at annual general meetings of the members shall be:
(a) Ascertain that a quorum is present
(b) Approve the minutes of the last annual general meeting and of any intervening special general meetings
(c) Committee report
(d) Treasurer's report and consideration of accounts
(e) Auditor's report
(f) Internal Audit and Compliance Committee report
(g) Reports of any other committees
(h) Declaration of dividend, and rebate of interest and charitable donations (if any).
(i) Delegation of power to the Committee to grant interim dividends and pay differential dividends (Subject to permission).
(j) Appointment of auditor
(k) Election of members of the Committee
(l) Resolutions
(m) Any other business

The members assembled at any annual general meeting may suspend or vary the order of business upon a majority of not less than two-thirds of the members present and voting at the meeting.

55. An annual general meeting may be made into a special general meeting for any purpose of which due notice has been given, provided that such business is not brought on until the business of the annual general meeting is concluded.


SPECIAL GENERAL MEETINGS

56. Any general meeting of the credit union other than an annual general meeting shall be a special general meeting. The Committee of the credit union or the internal audit and compliance committee may for good and sufficient reason convene a special general meeting of members for any purpose not specifically provided for elsewhere in these rules.

57. 57.1 Upon an application signed by one tenth of the total number of members, or 100 members, whichever is the lesser number, delivered to the credit union at its registered office, the Committee shall convene a special general meeting of members, provided such application states the business to be conducted at the meeting.

57.2 If, within one month of the date of receipt in the registered office of such application, the Committee has not convened a special general meeting to be held within six weeks from the date of receipt, any three members of the credit union acting on behalf of the signatories to the application may convene a special general meeting and they shall have a claim on the credit union for any costs properly incurred in convening such a meeting in accordance with the procedure laid down by rule 50.

58. A special general meeting shall not conduct any business not specified in the notice convening it.


VOTING RIGHTS AND PROCEDURES

59. Each member shall have only one vote on each question at a meeting of the members of the credit union irrespective of his or her shareholding in the credit union.  The committee may authorise proxy voting.

60. Votes at a general meeting shall be by show of hands and by proxy voting, unless a secret ballot is demanded by the Committee or by 10 members present at the meeting.  Subject to any special provision contained in these rules or law, all resolutions shall be carried by a simple majority of votes cast.

61. Every meeting of members shall have a chairperson who shall, where the votes are equal, have an additional or casting vote. The chairperson of the Committee shall, if present, take the chair at any meeting. If the chairperson is not present, the vice-chairperson shall do so and if s/he is not present within 15 minutes of the stated time of the meeting, the Committee shall elect one of their number to do so.


ELECTION PROCEDURE

62. Nominations for the Committee shall be in writing signed by a proposer and a seconder who shall be members of the credit union and also by the nominee to indicate his or her consent. All such nominees shall be members of the credit union and aged 18 years and over.

(a) Members of the credit union seeking election to the board of directors must obtain a recommendation from one of the branches of PCS trade union.

(b) There should be regional representation from all 10 regions of PCS and to ensure that this is achieved effectively, efficiently and within reasonable cost implications while providing the best service to members of the credit union that there should be a maximum number of 15 elected directors.

63. If there are outstanding vacancies, the chairperson of the meeting shall call for nominations from the floor. These, if duly seconded and if the nominee is present and consents, or has given his or her consent in writing, shall be in order if subsequently all security checks and FCA/PRA application procedures for fit and proper person as an approved person are received. All such nominees shall be members of the credit union and aged 18 years and over.

64. If there are more candidates than vacancies (either by prior submission or by nomination from the floor) ballot papers shall be prepared listing the names of all candidates and each member shall be allowed only as many votes as there are candidates.

65. The results of each election shall be announced by the chairperson. Candidates shall be placed in descending order of the number of votes cast for them and those candidates placed highest in the poll, equivalent to the number of vacancies to be filled shall be declared elected; provided that where there are more candidates nominated than the number of vacancies no candidate shall be declared elected unless s/he has received votes from the majority of
the members voting in the election. In the event of all vacancies not being filled in the first election, a further election or elections may be taken, the candidates on each election being all the remaining unelected nominees.

66. Notwithstanding the provision of Rule 64, if for any election the number of nominees does not exceed the number of vacancies to be filled a motion to dispense with the election procedure set out in Rules 64 and 65 and to declare elected all the nominees for that election may be proposed to the annual general meeting. If such a motion is carried by the majority vote of the members present at the meeting, the chairperson shall declare the nominees for that election duly elected.


SUITABILITY OF CERTAIN PERSONS TO HOLD OFFICE

67. A person under 18 years of age may not be an officer or serve on the committee of the credit union.

68. Where a person is, or becomes, an undischarged bankrupt or is, or has been, convicted on indictment of any offence involving fraud or dishonesty, the credit union committee shall decide whether the person is fit and proper to undertake responsibilities involved in the management of the credit union and where required notify the regulator. lf the committee decides that the person is not fit and proper and/or the person is not approved by the Regulator, the person shall be prohibited from taking any part in the running of, or management of, the credit union.

When an employee of the credit union becomes an undischarged bankrupt or is convicted on indictment of any offence involving fraud or dishonesty, the committee shall require an investigation to he carried out and where required notify the regulator. Depending on the findings of this investigation, disciplinary action may be taken which may result in dismissal.


COMMITTEE AND SUB COMMITTEES

69. A minimum of one week's notice shall be given for meetings of the main committee and sub committees.

70. The number of members of the Committee of the credit union shall not be less than 9 and the maximum number shall be as determined from time to time by the members at a general meeting. Committee members (other than those appointed under Rule 74) shall be elected at an annual general meeting. The Committee has the power to divide itself into a number of constituencies to ensure that the Committee consists of representatives of all areas, sections and diverse groups covered by the credit union.

71. A newly registered credit union shall require all officers to retire at the first annual general meeting following authorisation of the credit union. The Committee then elected shall be divided by lot into three equal groups, or as near as circumstances permit. The first group shall retire at the second Annual General Meeting, the second group at the third Annual General Meeting and the third group at the fourth Annual General Meeting that follow the registration of these rules. Thereafter committee members shall retire at the third annual general meeting following their election, this being the regular term of office. Any retiring committee member shall be eligible for re-election.

72. Any committee member who without due excuse accepted by the Committee fails to attend three consecutive regular meetings shall, if the members of the Committee so resolve, be deemed to have vacated his or her office, and the casual vacancy so created shall be filled as provided by Rule 74. 

73. The office of a committee member shall be vacated if s/he: 
(a) ceases to be a member of the credit union; 
(b) is adjudged an undischarged bankrupt or is convicted on indictment of any offence involving fraud or dishonesty, and the credit union committee has decided that the member is not a fit and proper person to undertake responsibilities involved in the management of the credit union; 
(c) is performing a controlled function and his or her approved person status is withdrawn by the Regulator; 
(d) becomes a patient within the meaning of part VII of the Mental Health Act 1983; or under the Mental Health (Scotland) Act 1983; 
(e) resigns his or her office by notice in writing to the secretary; 
(f) is deemed to have vacated his or her office in accordance with Rule 72;
(g) is removed by a resolution of a majority of the members of the credit union present at a special general meeting called for that purpose by the Committee or under the provisions of Rule 57 provided that such a committee member shall be given at least 14 days notice of the meeting and of the intention to remove him or her from office; or
(h) becomes an employee of the credit union.

74. A casual vacancy on the Committee shall, as soon as practicable, be filled by a vote of the majority of committee members then holding office. Committee members so appointed shall hold office for the remainder of the unexpired term of that office.

75. Regular meetings of the Committee shall be held not less than once in every two months, the date, time and place to be decided by the Committee. Reports from Officers and Committees will continue to be issued to the Board monthly. Any Director may request an urgent Board meeting at any time.

76. A majority of the committee members shall constitute a quorum for the transaction of business at any meeting of the Committee. The quorum for any adjourned meeting of the Committee shall be three or such greater number as the Committee shall decide.

77. Questions arising at any meeting of the Committee shall be decided by a majority of votes. Each member shall have one vote on any matter provided that the chairperson of the meeting shall have a second or casting vote in the case of equality of votes.

78. 78.1 The Committee may delegate any of the powers hereby given to it to sub committees in accordance with Rule 81(j) consisting of such of their own number together with such other members as they see fit. However committee members serving on an internal audit committee must be independent of all of the functions they inspect;

78.2 the Committee may also delegate any of the powers hereby given to it to officers in accordance with Rule 81 (k);

78.3 such sub Committees and officers shall, in the functions entrusted to them conform in all respects to the instructions given to them by the Committee.

79. All acts done by any meeting of the Committee or by any committee member acting in pursuance of any authority duly given shall, notwithstanding that it be afterwards discovered that there was some defect in the appointment or qualification of any committee member, be as valid as if such committee member had been duly appointed or qualified.

80. 80.1 No member of the Committee of the credit union, other than treasurer or any assistant treasurer, shall receive from the credit union any remuneration, whether directly or indirectly for any service performed by him or her in his or her capacity as such officer on behalf of or for the benefit of the credit union other than expenses necessarily incurred by him or her in such capacity in carrying out any duties in respect of the business of the credit union and approved by a majority vote of members of the Committee.

80.2 The treasurer and any assistant treasurers may receive such honoraria as may from time to time be approved, prior to the payment of such remuneration, by resolution of the annual general meeting of members, as provided in Rule 81 (r).

81. Subject to law and these rules the Committee shall have the general control, direction and management of the affairs, funds and records of the credit union and more particularly shall:

(a) ensure that the credit union complies with all statutory and regulatory requirements attached to all regulatory permissions held by the credit union;

(b) establish appropriate policies and procedures and systems of control to enable the safe and efficient operation of the credit union;

(c) maintain a working business plan sufficient to enable the development of the credit union;

(d) decide on applications for membership;

(e) maintain in force insurance against fraud and other dishonesty as required by the regulator and make any other insurance arrangements necessary or desirable for the protection of the credit union and its members;

(f) manage the loan business of the credit union, including determining the rate of interest on loans to members and the policy for recovery of debts;

(g) make regulations to be observed by the members governing the minimum frequency of subscriptions for shares the places and manner in which subscriptions shall be paid and otherwise determine the criteria to be used in deciding whether a member is participating adequately in the affairs of the credit union for the purpose of Rule 23;

(h) determine the range of financial products that may be offered by the credit union;

(i) establish the charges payable on any ancillary services offered by the credit union;

(j) establish an internal audit and compliance committee and other sub-committees as it deems necessary or desirable from time to time to facilitate the operations of the credit union; define and amend as necessary the terms of reference of sub-committees and appoint and remove members of sub-committees;

(k) delegate to officers specific duties, as it deems necessary or desirable from time to time to facilitate the operations of the credit union; define and amend as necessary the terms of reference of such officers;

(l) employ staff and determine their terms of employment, duties, remuneration and pension arrangements;

(m) fill any casual vacancy arising in the office of auditor or on the committee subject to Rule 105 (d) and Rule 74;

(n) during the absence or disability of any officer or committee member, appoint another member of the credit union to act temporarily, in his or her stead, provided that this in accordance with the FSA's Approved Persons regulatory regime and that such appointment shall cease upon the resumption by such officer of his or her duties and;

(o) appoint members willing to undertake collection of payments referred to in these rules as 'collectors' and to record such appointments in the Committee's minutes to ensure that they are covered by the credit union's insurance policy;

(p) remove from office any of the officers, committee members and collectors for failure to perform their duties or breach of these rules or the Regulations;

(q) ensure that training is provided for new officers, committee members, employees and collectors and that further training is provided periodically for all officers, committee members, employees and collectors to enable them to carry out their duties and responsibilities;

(r) recommend any honorarium which the treasurer or assistant treasurers may receive for their services on behalf of the credit union, subject to the approval of the annual general meeting provided that the annual general meeting may not increase the amount so recommended by the Committee;

(s) pay any expenses necessarily incurred by an officer, delegate or representative of the credit union in carrying out the business of the credit union;

(t)  remunerate necessary clerical, auditing and other professional services employed or utilised by the Committee or sub committees;

(u)  purchase, hold, lease, sub-lease, rent, sell, mortgage/ manage and develop property and land required for the purpose of conducting the business of the credit union thereon; acquire, erect, pull down, repair, alter, remove-or re-erect buildings, walls and fences on such land; and otherwise deal with such land and property and any rights there over and any interest therein on behalf of the credit union;

(v) cause to be kept proper books of accounts with respect to the transactions of the credit union, its assets and liabilities;

(w)  determine the authorised bank or banks for the deposit of the funds of the credit union and the signatories to cheques and other written instruments on behalf of the credit union; determine the authorisation for internet banking accounts;

(x)  submit the accounts of the credit union for audit at least once a year;

(y)  borrow money for the credit union subject to the Regulations;

(z)  administer any surplus funds belonging to the credit union and make decisions 'in respect of the investment of such funds;

(aa) make loans to other credit unions in accordance with the Regulations;

(bb) make arrangements for annual general meetings, committee meetings and other meetings as deemed necessary from time to time;
(cc) recommend for approval by the annual general meeting dividends and rebates of interest, and, subject to permissions or constraints, the ability to declare interim dividends and establish differential accounts;

(dd) convene a special general meeting whenever it considers necessary;

(ee) authorise use of all forms, instruments and other documents which it may deem necessary for the proper business of the credit union;

(ff)  take all such actions as may be required to ensure that the credit union complies with the Money Laundering Regulations 1993 and other legislation currently in force concerning systems and training to prevent money laundering;

(gg) take appropriate steps to assure the security and integrity of any information technology systems used by the credit union, including ensuring that the credit union complies with legislation currently in force concerning data protection;

(hh) perform and/or authorise any action consistent with the law and these rules not specifically reserved to the members by law or by these rules;

(ii)   perform such actions consistent with the law and these rules as the members in general meeting may from time to time require to be done;

(jj)  DELETED

82. 82.1  Within the period of 30 days following the annual general meeting, the Committee shall elect from its number a chairperson, vice-chairperson, treasurer, and a secretary of the credit union and such other officers as are deemed necessary for the management of the credit union. A person so elected shall hold office until the election of his or her successor. Committee members undertaking a controlled function must be approved by the regulator before they can perform such functions.

82.2 Within the period of 30 days following the annual general meeting the Committee shall elect from its number committee members to serve on the internal audit and compliance committee. The Committee members appointed by virtue of this rule shall not serve on the loan committee or as loan officers.

83. 83.1 Subject to any specific provision contained in these rules, the chairperson, or in his or her absence, the vice-chairperson, shall preside at meetings of the Committee and at meetings of the members; s/he shall perform such other duties as s/he may be directed by the Committee not inconsistent with the provision of law or of these rules.

83.2 In the absence of both the chairperson and vice-chairperson or if neither is present within 15 minutes after the time appointed for the beginning of the meeting, or if neither is willing to act, the members of the Committee shall elect one of their number to be the chairperson of the meeting.


LOAN COMMITTEE AND LOAN OFFICER(S)

84. The main committee shall draw up a loan policy that shall be applied equally to all members.

85. The main committee may decide to establish a loan committee or to delegate the operational aspects of the loan committee to loan officer(s), in accordance with Rule 78.

86. 86.1  If the main Committee decides to establish a loan committee, it shall consist of a minimum of three committee members, elected by the main committee within 30 days of the annual general meeting. The Treasurer or Assistant Treasurer may not serve on the loan committee.

86.2 The loan committee shall implement the loan policy and may recommend changes to the loan policy to the main committee.

86.3 The loan committee shall, in accordance with the loan policy and Rules 30-40, consider and decide on loan applications.

87. 87.1  The main committee may appoint loan officer(s) to consider and decide on loan  applications, subject to Rules 30-40.

87.2 The treasurer and assistant treasurer may not be loan officer(s).

87.3 The main committee will specify the duties of the loan officer(s) who will implement the loan policy and may recommend changes to the loan policy to the main committee.


lNTERNAL AUDIT AND COMPLIANCE COMMITTEE AND INTERNAL AUDIT/COMPLIANCE OFFICER(S)

88. In accordance with Rule 81 (j) the main committee shall establish an internal audit and compliance committee consisting of not less than 3 committee members who shall be elected by the main committee within 30 days of the annual general meeting. The treasurer and assistant treasurer may not serve on the internal audit and compliance committee.

89. The internal audit and compliance committee shall choose from its number a chairperson and secretary. The secretary shall maintain records of all actions taken by the internal audit and compliance committee.

90. The internal audit and compliance committee shall meet not less frequently than quarterly.

91. The internal audit and compliance committee shall provide a written report to the main committee not less than quarterly and shall provide a written report to the annual general meeting and, whenever it sees fit, to a special general meeting.

92. The internal audit committee shall monitor all activities of the credit union to ensure that:

(a) it is complying with the legislation, regulations, these rules and the credit union's policies which govern its activities;
(b) it is being managed effectively and efficiently;
(c) financial records are accurate and kept up to date;
(d) the possibilities for fraud and theft are reduced

93. Within a period of one month following the annual general meeting, the internal audit and compliance committee shall draw up a confidential audit plan for the following 12 months.

94. Where the internal audit and compliance committee has good and sufficient reason to believe that the credit union may not be complying with the legislation, Regulations, these rules and the credit union's policies which govern its activities, or that financial records are not accurate and kept up to date or that fraud or theft may have occurred, the internal audit and compliance committee shall report this to the main committee. If either no action is taken or the action fails to resolve the internal audit and compliance committee's concerns, the internal audit and compliance committee shall convene a special general meeting of the members under Rule 56 and shall provide a written report to the auditor, which shall include the date of the special general meeting.

95. To facilitate the work of the internal audit and compliance committee, the main committee may appoint or employ officer(s) to undertake internal audit duties and monitor compliance who shall not hold any other office on the committee of the credit union, to work under the direction and supervision of the internal audit and compliance committee.

96. The officers undertaking internal audit and compliance duties shall keep a record of all work undertaken and shall provide a written report to the internal audit and compliance committee not less than quarterly, or more frequently as the internal audit and compliance committee may prescribe.

97. Where an officer undertaking internal audit and compliance duties has good and sufficient reason to believe that the credit union may not be complying with the legislation, these rules and the credit union's policies which govern its activities, or that financial records are not accurate and kept up to date or that fraud or theft may have occurred, he or she shall report this to the internal audit and compliance committee in the first instance. If either no action is taken or the action fails to resolve the officer's concerns, he or she shall have the right to attend a meeting of the main committee. If either no action is taken or the action fails to resolve the officer's concerns he or she shall provide a written report to the external auditor.


SECRETARY, TREASURER AND ASSISTANT TREASURER

98. The secretary shall give, or cause to be given, notice of all meetings of the members and of the committee. S/he shall prepare and maintain minutes of all meetings and shall perform such other duties as the Committee may from time to time determine.

99. The treasurer shall, subject to such limitations and controls as may be imposed by the Committee;

(a) be responsible for the custody of all funds, securities, valuable papers and other assets of the credit union;
(b) cause to be established and maintained a satisfactory system of control of the books of account, cash holdings and all receipts and remittances of the credit union;
(c) cause to be deposited all cash in accordance with the policies of the credit union and insurance requirements;
(d) provide financial reports to the Committee meetings;
(e) prepare and submit to the auditor such financial reports and returns as the auditor may require;
(f) report to the members at every annual general meeting of the credit union;
(g) perform any other actions not inconsistent with the law and these rules as directed by the committee;

100. The Committee may appoint one or more assistant treasurers, none of whom may hold any office which the treasurer does not hold, and authorise them to act in addition and subject to or in the absence of the treasurer or during his or her inability to act.


OFFICERS, COMMITTEE MEMBERS AND EMPLOYEES

101. No officer, committee member or employee of the credit union shall in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting his or her pecuniary interest or the pecuniary interest of any person or body (other than the credit union) in which s/he is directly or indirectly interested. Such person shall withdraw from the meeting and the remaining qualified persons shall constitute a quorum while that matter is being discussed or determined should his or her withdrawal result in a quorum not being present.

102. An officer, committee member or employee or collector of the credit union shall not disclose to any person any information regarding any transaction of a member of the credit union therewith except in so far as may be necessary for the proper conduct of the business of the credit union and in keeping with the Statement of Principles of Approved persons. All officers, committee members, employees and collectors shall sign a declaration of secrecy on election or appointment which continues to be binding after the officer, committee member, employee or collector has ceased to be involved in or work, for the credit union. The credit union shall adhere to the requirements of the Data Protection Act 1998 and any such subsequent legislation.

103. An officer, committee member, employee or collector of the credit union shall be indemnified by the credit union against all costs, losses and expenses which s/he may incur or become liable for by reason of any contract entered into or any act or thing done by him or her in discharge of his or her duties as authorised by the Committee, and the Committee is empowered to pay the amount of such indemnity out of the funds of the credit union.

104. If an officer or committee member of the credit union fails to perform the duties of his or her office, the Committee may, after giving him or her reasonable notice and opportunity to be heard, declare vacant the office and appoint another eligible person in his or her place, or fill from its number such vacancy. Officers or committee members undertaking a controlled function must be approved by the regulator before they can perform such functions.


ACCOUNTS, AUDIT, RETURNS AND RULES

105.
(a) There shall be appointed in each year of account a qualified auditor to audit the credit union's accounts and balance sheet. For the purposes of this rule "qualified auditor" means a person who is a qualified auditor under Section 7 of the Friendly and Industrial and Provident Societies Act 1968.
(b) None of the following persons shall be appointed as auditor of the
credit union:
(i) an officer, committee member, collector or employee of the
credit union;
(ii) a person who is a partner of, or is in the employment of, or who
employs an officer, committee member, collector or employee of the credit union;
(c) Save as provided in paragraph (d) of this rule every appointment of an auditor shall be by resolution of an annual general meeting of the
credit union.
(d) The first appointment of an auditor shall be made within three months of the registration of the credit union and shall be made by the Committee if no general meeting of the credit union is held within that time. The Committee may appoint an auditor to fill any casual
vacancy occurring between general meetings of the credit union.

106. For the purpose of any audit the auditor shall be given access to and be entitled to call for and examine all books, deeds, documents and accounts of the credit union. S/he shall be entitled to require from the officers of the credit union such information and explanations as s/he thinks necessary for the performance of his or her duties. The auditor shall be entitled to attend any general meetings of the credit union, to receive all notices of the communications relating to any general meeting which any member of the credit union is entitled to receive, and to be heard at any meeting which s/he attends on any part of the business of the meeting which concerns him or her as auditor.

107. 'The credit union shall within the time period allowed by law send to the Regulator the annual return relating to its affairs during the period covered by the return, together with a full copy of the credit union's audited accounts for such period.

108. The credit union shall keep a copy of the last audited accounts displayed in a conspicuous place in its registered office.


SUPPLY OF COPIES OF AUDITED ACCOUNTS, RULES AND OTHER DOCUMENTS

109. 109.1 The secretary of the credit union shall supply free on application a full copy of the last audited accounts to any member.

109.2 The secretary shall supply to any person applying on payment of an amount prescribed by law a copy of the rules of the credit union and any amendments thereto.

109.3 The secretary shall supply to a member on application copies of the credit union's policies. The Committee shall decide on the charge if a full copy of all the policies is requested.


REGISTER OF MEMBERS 

110. The credit union shall keep at its registered office a register of members containing the following particulars:
(a) the names and addresses of its members;
(b) the date at which each member was entered in the register as a member, and the date at which any person ceased to be a member;
(c) the names and addresses of the officers of the credit union with the offices held by them respectively and the dates on which they assumed office;
(d) a statement of the number of shares held by each member, of the amount paid on the shares of each member and the date and manner in which any share ceased to be held by the member;
(e) a statement of other property in the credit union, whether in loans or otherwise, held by each member.

The register shall be so constructed that it is possible to inspect the particulars therein mentioned in paragraphs (a), (b) and (c) of Rule 110 without exposing to inspection the other particulars entered therein. This is a democratic requirement to enable members to petition other members for a special general meeting.


INSPECTION OF ACCOUNTS 

111. 111.1 Any member or person having an interest in the funds of the credit union may inspect their own account and the books containing the names of members, including the particulars mentioned in paragraphs (a), (b) and (c) of Rule 110 entered in the register of members, at all reasonable hours at the registered office or any place where the same are kept, subject to such regulations as to the time and manner of inspection as may be from time to time decided by a general meeting of the credit union. 

111.2 All books of account and other records shall be available for inspection at all reasonable times by the auditor; the committee, sub committees, or other persons duly authorised on their behalf.


PASSBOOKS, STATEMENTS AND TRANSACTIONS

112. Statements of accounts shall be issued to members.

113. Money paid in or out on account of shares, loans, interest and entrance fees shall be evidenced by an appropriate voucher, payroll record, or receipt, or statement. A statement of account shall itemise all transactions and a copy of which shall be issued to each member at least annually or on his or her request.

114. Any person may pay money into a member's account, but only the member him or herself may make a withdrawal from his or her share account. The credit union shall have the discretion to accept a written signed request from any member permitting a named individual to conduct transactions on the member's behalf. The credit union will take all reasonable steps to assure itself of the validity of each written request and will be indemnified by the member in the event of a subsequent dispute.

115. DELETED

116. DELETED


RETENTION OF RECORDS

117. 117.1 The credit union shall retain permanently the following records:
(a) Register of members as set out in Rule 110;
(b) Rules and registered amendments;
(c) Receipts for securities held, a securities register and register of contracts of guarantee;
(d) Minutes of all meetings;
(e) Members share and loan records;
(f) Nominal and general ledgers;
(g) Register of nominations;
(h) Copies of annual returns;
(i) Register of Approved persons;
(j) Register of bad debts written off.

117.2 Any other record required to be kept as a result of the obligation to maintain proper books of account shall be preserved by the credit union for a period of 6 years after the date to which it refers.

117.3 The credit union shall maintain records in accordance with the Money Laundering Regulations 1993 and retain these records for a period of 6 years, (or in accordance with any other regulations which may be prescribed by law).


TRANSMISSION OF PROPERTY IN THE CREDIT UNION TO A BENEFICIARY

118. 118.1 A member of the age of 16 years or over may, nominate in writing and in accordance with the law, any person or persons to whom any of his or her property in the credit union at the time of his or her death shall be transferred.
On receiving satisfactory proof of death of a member who has made a nomination, the Committee shall pay the full value of the property to the beneficiary. Any insurance cover that has been provided by the credit union on behalf of the member shall be paid to the beneficiary.
In the event of a dispute of entitlement to such a payment, the credit union shall pay the full value of the property to the deceased member's estate, clearly indicating at the time of the payment the interests of the nominated beneficiary.

118.2 Where a member becomes incapable through disorder or disability of mind of managing his or her own affairs, the Committee, if presented with satisfactory medical evidence and are also satisfied that no person has been appointed to administer his or her property on his or her behalf, may pay the amount of shares belonging to such a member to any person whom they shall judge proper to receive it on his or her behalf. The receipt of such a person shall be a valid and sufficient release to the credit union for any sum so paid.

118.3 If a member becomes or is declared bankrupt, his or her shares in the credit union shall be released only in such a manner as prescribed by the personal representative or trustee in bankruptcy.


AMENDMENTS TO RULES

119. Any of these rules that are not prescribed by law, may be rescinded or altered or a new rule, providing it complies with the law, may be made by a resolution passed by a two thirds majority at an annual general meeting or at a special general meeting specifically called for that purpose. Notice of the proposed alteration must be given at the same time as the notice of the meeting. No amendment of rules made by the credit union in general meeting shall invalidate any prior act of the Committee that would have been valid if the amendment had not been made.

120. No amendment of rules shall be valid until registered with the Regulator. Two copies of the amendment, each signed by three members of the credit union and secretary, shall be sent to the Regulator.


 

CHANGE OF REGISTERED OFFICE

121. The registered office may be changed by resolution of the Committee and notice of any such change shall be sent by the secretary to the Regulator.


USE OF NAME AND SEAL

122. The credit union has decided not to have a seal and, accordingly, there is no need for custody or use of a seal.


DISSOLUTION OF THE CREDIT UNION

123. The credit union may be dissolved:
(a) by an instrument of dissolution to which not less than three-fourths of the members of the Credit Union have given their consent testified by their signatures to the instrument; or
(b) on its being wound up in pursuance of an order or resolution made as is directed in regard to companies by the Insolvency Act 1986.

124. If on the dissolution of the credit union there remains after the payment of debts, repayment of share capital and discharge of all other liabilities any assets whatsoever, such assets shall not be paid to or distributed among the members of the credit union but shall be:
(a) transferred to another credit union; or
(b) if not so transferred, applied for charitable purposes as may be determined by the members in general meeting.


COMPLAINTS AND DISPUTES

125. The credit union shall set up a procedure for dealing with complaints. The credit union will acknowledge receipt of a complaint within five days and aim to resolve it and send a final response within eight weeks of receipt of said complaint.

126. If a complainant remains dissatisfied at the completion of the credit union's own complaints procedure, the complainant shall have six months from the date of receipt of the credit union's final response to refer his or her complaint to the Financial Ombudsman Service.

127. Complainants who remain dissatisfied following a formal decision by the Ombudsman, may jointly agree with the credit union to refer their complaint or dispute to the County Court (or Sheriffs Court in Scotland) within whose jurisdiction the registered office of the credit union is situated. The Court shall have the power to order the expenses of determining the same to be paid either out of the funds of the credit union or by such party to the dispute as the Court decides and such determination shall be binding on all parties without appeal and shall not be removable into any court of law or restrainable by injunction.


INTERPRETATION

In these rules, the following terms shall, unless the context requires otherwise) have the meanings ascribed to them:

"the Act" means the Credit Unions Act 1979 and the Financial Services and Markets Act 2000.

"amendment" in relation to the rules of the credit union includes a new rule and a resolution rescinding a rule of the credit union

"Approved Person" means an individual approved by the FSA to perform designated controlled functions of the credit union.

"collector" means a member who collects deposits and deals with enquiries at a credit union's office or collection point. Such terms as 'teller, cashiers or service point staff' may also be used to describe collectors.

"Committee" or "main committee" means the committee of management of the credit union elected in accordance with the provisions of these rules. The term 'board of directors' may also be used in place of 'committee'.

"credit union" means a society registered under the Industrial and Provident Societies Act 1965 by virtue of Section 1 of the Credit Unions Act of 1979

"days notice" shall be exclusive of the day on which the notice is served or deemed to be served, but inclusive of the day to which the notice applies

"deposit" in relation to Rule 25 shall have the meaning ascribed to it by the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 - SI2001/544.

"officer" means a committee member elected to the post of chairperson, vice chairperson, secretary, treasurer or such as posts as the Committee may from time to time determine. The term 'director' may also be used in place of 'officer'.

"Regulator" means the Financial Services Authority (FSA) or its successor under the law.

"'Regulations" means the regulations and rules by the Financial Services Authority or by H.M. Treasury within a statutory instrument.

"relative" in Rule 6 (2) shall have the meaning ascribed to it by Section 31 (1) of the Credit Unions Act 1979, or subsequent legislation which amends this definition in relation to credit unions.

"total shareholdings" shall mean the total shareholding as shown in the most recently audited balance sheet to have been sent with the credit union's annual return to the regulator. 

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