Press release
Flexibility for Credit Union General Meetings
Published on
Last updated on
Published on
Last updated on
On Tuesday 06th October the Government approved the General Scheme of a credit union Bill to allow credit unions, at their individual discretion, to host, either partial or wholly, virtual General Meetings on a permanent basis. The amendments will also allow credit unions, at their individual discretion, to avail of electronic voting, and allow wider flexibility for other forms of voting. It will be the choice of each individual credit union whether or not they wish to avail of this flexibility depending on their own circumstances.
The General Scheme also provides for a temporary period for credit unions to delay hosting AGMs related to financial year end September 2020 until April 2021. This will allow for the passage of the Bill and sufficient notice periods for General Meetings.
Work is underway on the detailed drafting of the Bill which will be brought before the Oireachtas as soon as possible. The Bill is considered a priority for enactment by the Dáil before the end of 2020, but this cannot be guaranteed. Officials will continue to engage with sector representatives, who will be informed when the Bill will be published.
The Minister for Finance, Paschal Donohoe T.D., stated that:
“The Government has now approved the drafting of a credit union amendment Bill. The Government understand the difficulties facing credit unions organising general meetings during these uncertain times and has therefore designated this Bill as priority legislation in order to progress it as quickly as possible.”
The Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Sean Fleming T.D., noted:
“The proposed Bill will allow credit unions at their individual discretion to host virtual AGMs and also provides credit unions with greater flexibility in terms of forms of voting at general meetings. Credit unions are member owned and not for profit, and appropriately, this proposal may also facilitate increased member participation at general meetings”
Ends
Notes for Editors
Credit Union Act, 1997 – Postponement of an AGM
Should the legislative changes not be made in time, and public health measures continue to restrict large physical meetings, under Section 78(4) of the Act, the Central Bank has the power to direct a credit union to postpone the holding of a credit union annual general meeting where it considers it necessary to do so and for a period not exceeding nine months.
Communication to Members
Credit unions have worked hard to keep their members informed throughout the pandemic and while they may not be able to hold Annual General Meetings at this current moment, they can continue to communicate with their members through a variety of channels and provide up-to-date information on any developments in the credit union.