Credit Union Act, 1966

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General provisions relating to shares.

8.—(1) A credit union may issue to members thereof shares in the credit union as provided by the rules thereof, and such shares may be either withdrawable or non-withdrawable.

(2) A credit union shall cause to be kept a record (which shall be called, and is in this Act referred to as, the register of shares) of the shares held by each member, and the register of shares shall contain the particulars mentioned in section 34 of the Principal Act.

(3) A credit union shall not issue to a member a certificate denoting ownership of a share.

(4) Subject to subsection (7) of this section, a share in a credit union may be subscribed and paid for in the manner provided by the rules of the union; provided that all shares must be of one pound nominal value and that no share shall be allotted to a member until he has paid therefor in cash in full without any premium or discount.

(5) (a) All withdrawable shares in a credit union shall have equal rights.

(b) All non-withdrawable shares in a credit union shall have equal rights, and repayments in respect of such shares shall not be capable of being made except as provided by the Industrial and Provident Societies Acts, 1893 to 1966.

(6) Notwithstanding anything in the rules of a credit union or in any contract, the credit union may require not less than sixty days' notice from a member of his intention to withdraw a share in the credit union and a credit union shall not permit a withdrawal of shares while any claim due on account of deposits is unsatisfied.

(7) Notwithstanding subsection (4) of this section, whenever its board of directors so recommend a credit union may apply any sum standing to the credit of its reserves (other than the reserve required by section 23 of this Act) to the payment up of shares and may issue the shares to the members as fully paid bonus shares in the proportions to which the members would have been entitled if the said sum had been distributed by way of dividend.

(8) A member of a credit union shall not withdraw a share therein if upon such withdrawal the nominal value of the shares and deposits therein then held by him would be less than his total liability (including contingent liability) to the credit union, whether as borrower, guarantor or otherwise.

(9) A member of a credit union may, with the approval of the board of directors, transfer to another member a share in that credit union, provided that the number of shares then held by that other member does not exceed the limit imposed by or under this Act.

(10) No charge in respect of a transfer of shares by a member of a credit union shall be made by the credit union and such transfer shall entitle the transferee to such dividends in respect of such shares as are unpaid at the date of the transfer.

(11) (a) A member of a credit union, the proposed transfer of whose shares therein the board of directors have refused to approve, may appeal against such refusal to the District Court at a sitting thereof for the District Court District in which the registered office of that credit union is situate.

(b) Notice of an appeal under paragraph (a) of this subsection shall be in writing and shall set out the grounds on which the appeal is based.

(c) A decision of the District Court on an appeal under this subsection shall be final, save that any question of law arising in such appeal may be referred to the High Court for determination and an appeal shall lie by leave of the High Court to the Supreme Court from every such determination.