Credit unions operate under a not-for-profit mandate, have a community focus and a volunteer ethos. These are the distinctive features that set credit unions apart from other financial organisations.
In line with its ethos, the Credit Union Act 1997 provides for a limitation of remuneration for specific posts within a credit union. This matter is governed by Section 68 of the 1997 Act which specifically states that:
(1) A credit union shall not pay any remuneration, directly or indirectly, to -
(a) a director of the credit union, or
(b) a member of the board oversight committee or a principal Committee of the credit union,
for any service performed by that person in that capacity.
The 1997 Act further states that
(2) Nothing in subsection (1) shall be regarded as prohibiting the payment (or reimbursement) of expenses -
(a) which are necessarily incurred by a director or committee member in the course of performing any service on behalf, or for the benefit, of the credit union; and
(b) which are approved by a majority of the directors voting at a meeting of the board.
A credit union is legally responsible for compliance with requirements imposed under legislation and within regulations. Should the Deputy have any particular concern, this should be brought to the attention of the Registrar of Credit Unions at the Central Bank who is responsible for regulation and supervision of the credit union sector.
