Permanent Shares

A Permanent Share represents a member's ownership of, or member's equity in the Credit Union. This amount cannot be withdrawn while the person remains a member.

Permanent Shares are different from voluntary shares in that, the money in voluntary shares can be withdrawn, subject to a notice period if necessary. Permanent Shares cannot be withdrawn, they can only be transferred when the member decides to give up membership. These shares are not intended to be used as collateral.

Permanent Shares are beneficial to members in that, they represent the members' part ownership or equity in the Credit Union and are used for the growth and development of the Credit Union. Dividends on Permanent Shares may be paid if recommended by the Board of Directors and approved by members in an Annual General Meeting.

Permanent Shares are necessary as they give the Credit Union another option for raising capital. It is also in keeping with the International Financial Reporting (Accounting) Standards that require equity to be treated in a certain way.