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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART IVOrganization and Commencement (continued)

Organization Meetings (continued)

Federal Credit Unions (continued)

First Meeting of Members

Marginal note:Calling members’ meeting

  •  (1) If at least five million dollars, or any greater amount that the Minister may specify, has been received by a federal credit union in respect of which letters patent were issued under subsection 22(2) from the issue of its membership shares and shares, the directors of the federal credit union must, without delay, call a meeting of the members of the federal credit union.

  • Marginal note:Meeting of members

    (2) At the meeting, the members must

    • (a) make by-laws;

    • (b) elect directors in accordance with this Act and the federal credit union’s by-laws; and

    • (c) appoint an auditor or auditors to hold office until the close of the first annual meeting of the federal credit union.

  • Marginal note:Term of office of first directors

    (3) The term of office of the first directors ends at the close of the meeting referred to in subsection (1).

  • 2010, c. 12, s. 1924

Membership in a Federal Credit Union

Conditions of Membership

Marginal note:Membership governed by by-laws

  •  (1) Subject to the provisions of this Act, membership in a federal credit union is governed by its by-laws.

  • Marginal note:Minimum membership shares required

    (2) To be a member of a federal credit union, a person must acquire and hold the minimum number of membership shares required under the federal credit union’s by-laws.

  • Marginal note:Member who ceases to hold the minimum

    (3) Subject to any limitations in the federal credit union’s by-laws, including limitations on the rights members may exercise, a member of a federal credit union who ceases to hold enough membership shares to be a member continues to be a member of the federal credit union for the purposes of this Act.

  • Marginal note:Ground for expulsion

    (4) For greater certainty, subsection (3) does not prevent holding fewer than the minimum number of membership shares from being set out in the federal credit union’s by-laws as a ground for expulsion under subsection 47.06(1) or section 47.09.

  • 2010, c. 12, s. 1924

Marginal note:Subscription deemed application

  •  (1) A subscription for the number of membership shares in a federal credit union required by the federal credit union’s by-laws for membership constitutes an application for membership and the issue of a membership share to the applicant constitutes admission to membership.

  • Marginal note:Approval required

    (2) Subject to subsection (1), a person becomes a member of a federal credit union when the person’s application for membership is approved by the directors or an employee authorized by the federal credit union and the applicant has complied fully with the federal credit union’s by-laws governing admission of members.

  • 2010, c. 12, s. 1924

Withdrawal and Termination

Marginal note:Withdrawal of membership

  •  (1) A member of a federal credit union may withdraw from the federal credit union at any time by giving notice in accordance with the by-laws.

  • Marginal note:Deemed notice

    (2) A deceased member is deemed to have given notice to the federal credit union of their intention to withdraw on the day of their death.

  • Marginal note:Rights of withdrawing member

    (3) The by-laws of a federal credit union must set out the rights of a withdrawing member.

  • 2010, c. 12, s. 1924

Marginal note:Expulsion

  •  (1) A member of a federal credit union may be expelled from membership, in accordance with the by-laws, by a resolution of the directors on the grounds set out in the by-laws.

  • Marginal note:Member’s rights relating to expulsion

    (2) The by-laws of a federal credit union must set out the rights of members who are expelled under subsection (1), and those rights must include

    • (a) the right of a member to receive advance notice of any meeting of the directors at which the board will consider a resolution to expel the member;

    • (b) the right of a member not to be expelled without being given an opportunity to make representations on the matter at the meeting of the directors;

    • (c) the right of an expelled member to appeal the decision of the directors at the next meeting of the members; and

    • (d) the right of the expelled member to be reinstated as a member of the federal credit union if, at the next meeting of the members, the members, by ordinary resolution, set aside the directors’ resolution.

  • Marginal note:Procedures to be set out in by-laws

    (3) The by-laws of a federal credit union must set out

    • (a) the procedures to be followed by the directors to provide the advance notice referred to in paragraph (2)(a); and

    • (b) the procedures to be followed relating to the appeal referred to in paragraph (2)(c).

  • Marginal note:Notice of decision

    (4) If the directors pass a resolution expelling a member under subsection (1), the federal credit union must, within five days after the passing of the resolution, notify the member of the directors’ decision by registered letter addressed to the member at the member’s recorded address.

  • 2010, c. 12, s. 1924

Marginal note:Inactivity

 No by-law may provide for the expulsion of a member by reason only of inactivity of the member in relation to the business or affairs of the federal credit union.

  • 2010, c. 12, s. 1924

Marginal note:Redemption

 No by-law governing the withdrawal of a member from membership or the termination of the membership of a member may authorize a redemption of membership shares in contravention of section 485.

  • 2010, c. 12, s. 1924

Marginal note:Termination by members

 Unless the by-laws provide otherwise, the membership of a member may be terminated by a special resolution of the members. Section 47.06 applies, with any modifications that the circumstances require, to a termination by the members.

  • 2010, c. 12, s. 1924

Marginal note:Winding-up proceedings in respect of member

 Despite subsection 47.06(1), a federal credit union may, by written notice to a member, terminate the membership if the member is a body corporate and winding-up proceedings have commenced with respect to it.

  • 2010, c. 12, s. 1924

General Provisions — Federal Credit Unions

Marginal note:Prohibition

 An entity must not become a member of a federal credit union if, as a result of becoming a member, the majority of the members of the federal credit union would not be natural persons.

  • 2010, c. 12, s. 1924

Marginal note:Provision of services

 A federal credit union must provide its services primarily to its members.

  • 2010, c. 12, s. 1924

Marginal note:Right to vote

 Each member of a federal credit union has only one vote on all matters to be decided by the members.

  • 2010, c. 12, s. 1924

Marginal note:Members under 18

 Subject to the by-laws, a person less than 18 years of age may be admitted to membership in a federal credit union and may vote at meetings of the federal credit union.

  • 2010, c. 12, s. 1924

Marginal note:Membership not transferable

 No transfer of a membership is valid for any purpose.

  • 2010, c. 12, s. 1924

Marginal note:Reinstatement — section 47.06

  •  (1) A person whose membership has been terminated under section 47.06 may be reinstated as a member of the federal credit union only by ordinary resolution of the members.

  • Marginal note:Reinstatement — section 47.09

    (2) A person whose membership has been terminated under section 47.09 may be reinstated as a member of the federal credit union only by special resolution of the members.

  • 2010, c. 12, s. 1924
 
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