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Powers and functions of board of directors.
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13.—(1) The board of directors of a credit union shall have the general control, direction and management of the affairs, funds and records of the credit union.
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(2) Without prejudice to the generality of subsection (1) of this section, the powers and functions of the board of directors of a credit union shall include all or any of the following matters—
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(a) the making of decisions in regard to applications for membership of the credit union and in regard to applications for loans,
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(b) the fixing of the amount and character of the surety bond (if any) required in respect of any officer of the credit union who has custody of funds or other property of the credit union,
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(c) the determination from time to time of the rate of interest which shall be charged on loans to members, and of the rate of interest which shall be paid on deposits,
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(d) the recommendation to members, for their declaration, of dividends,
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(e) the fixing of the maximum number of shares in the credit union which may be held by a member and of the maximum amount that a member may deposit with the credit union, such limits to apply equally to all members,
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(f) the determination from time to time of the maximum amount which may be on loan at a particular time to a member in respect of secured loans and unsecured loans respectively, such limits to apply equally to all members,
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(g) the making of decisions in respect of the investment of surplus funds of the credit union,
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(h) the employment and the terms of employment of such person or persons as the board of directors consider necessary for the purposes of the credit union; provided, however, that the remuneration, in respect of employment in the credit union, of a person who is a director thereof, shall require the approval before the payment of such remuneration of the members of the credit union at a general meeting thereof,
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(i) the purchase and sale of property for the credit union,
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(j) the borrowing of money by the credit union,
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(k) the taking, in accordance with the instructions of the members of the credit union at a general meeting thereof, of any lawful action not inconsistent with the rules of the credit union.
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(3) The board of directors of a credit union shall meet as often as may be necessary for the proper discharge of its business but not less than once in every month.
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(4) (a) The board of directors may, notwithstanding subsections (1) and (2) of this section, appoint a committee (which shall be known, and is in this Act referred to, as the Credit Committee) of three or more members of the credit union, to consider and decide on applications for loans.
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(b) The Credit Committee shall report to the board of directors not less than once in every month and, in the exercise of the functions delegated to it, shall conform to any instructions imposed on it by the board of directors.
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(c) The membership of the Credit Committee shall include not less than one director but shall not include the treasurer of the credit union.
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(5) (a) The board of directors of a credit union may, notwithstanding subsections (1) and (2) of this section, appoint a committee (which shall be known, and is in this Act referred to, as the Membership Committee) of one or more members of the credit union to consider and decide on applications for membership of the credit union.
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(b) The Membership Committee shall report to the board of directors not less than once in every month and, in the exercise of the functions delegated to it, shall conform to any instructions imposed on it by the board of directors.
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(c) The membership of the Membership Committee shall include not less than one director but shall not include the treasurer of the credit union.
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(6) A director of a credit union who is also a member of the Membership Committee or the Credit Committee thereof shall, upon ceasing to hold the office of director, cease to be a member of the Membership Committee or Credit Committee, as the case may be.
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(7) The acts of a director of a credit union shall be valid notwithstanding any defect which may afterwards be discovered in his appointment or qualification.
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