Any legal entity or individual who has expressed a desire to join the credit union and has made a share (membership) contribution to the statutory fund of the union can become a member of the credit union. The document confirming the person’s membership in the credit union is the membership certificate issued by the credit union.
The number of members of the credit union cannot be less than 50.
To join the credit union, a potential member of the credit union must pay a minimum share in the amount established by the charter of the credit union. The share contribution is made only in cash and represents the contribution of a member of the credit union to the statutory fund.
The credit union also sets a ceiling on the share of one member of the credit union. As a rule, the share contribution should not exceed 10% of the authorized capital of the credit union. This limitation is applied in order to reduce the liquidity risk and the ability of one person to influence the decisions of the credit union.
The share contribution is the property of the member of the credit union and entitles him/her to receive a portion of the profits of the credit union in the form of dividends. Dividends can be paid in accordance with the decision of the general meeting of members, only if there is a net profit based on the results of the financial year, and after covering all expenses, mandatory payments and the formation of the required reserves of the credit union.
The accrual of dividends to members of the credit union is carried out in proportion to the size of their share contributions.
Upon withdrawal or exclusion of a member from the credit union, the share contribution must be returned to the member in the manner prescribed by the charter of the credit union.
Credit union members are entitled to:
- use of services provided by the credit union;
- participate in the management of the credit union;
- receive a part of the credit union’s profit – in the form of dividends (in accordance with the established procedure);
- obtain complete and reliable information on the activities of the credit union in accordance with the charter;
- exit from the credit union;
- receive a part of the property, in proportion to the share contribution, in the event of the liquidation of the credit union.
Members of the credit union may have other rights in accordance with the legislation and the charter of the credit union.
The duties of the credit union members include:
- compliance with the charter;
- implementation of the decision of the credit union’s council, the credit committee, the audit commission;
- timely and full refund of received loans;
- assistance in improving the business reputation and creditworthiness of the credit union.
Members of the credit union may also have other obligations in accordance with the law and the charter.