Amendment No. 37 is related to amendment No. 36 and both may be discussed together.
SECTION 29.
I move amendment No. 36:
In page 28, lines 33 to 36, to delete subsection (1) and substitute the following:
"(1) A member of a credit union may transfer a share in the credit union to another member so long as—
(a) the number of shares held by that other member does not exceed the limit imposed under this Act; and
(b) if the board of directors so require in any case, the transfer has the approval of the board.".
Section 29(1) provides that a credit union member may with the approval of the credit union's board of directors transfer a share to another member so long as the number of shares held by the other member does not exceed the limit imposed under the Bill. The credit union advisory committee has queried the need for the board of directors to decide on every transfer of shares between members. As a matter of practice, this is normally a routine decision and I have decided the requirement for board approval should be at the discretion of the board. Consequently the mandatory requirement to obtain board approval is now being deleted in section 29(1).
The amendment to section 29(3) is a consequence of the fact that board approval under section 29(1) would no longer be mandatory.
Will the board have its own guidelines in this area?
Yes, it is open to the board to exercise its discretion if it deems approval necessary in any case. It is not mandatory in legislation.
Amendment agreed to.
I move amendment No. 37:
In page 28, subsection (3), line 41, to delete "If the board of directors of a credit union" and substitute "If, in a case where the board of directors of a credit union have imposed a requirement under subsection (1)(b), the board".
Amendment agreed to.
Section 29, as amended, agreed to.