Why are Common Shares required?
Equity is vital to the growth and ongoing operation of any business. The provincial government has also recognized the need for equity and has made it a requirement for all Alberta credit unions to have 4% of their assets as equity by 1999.
The money you invest in Common Shares strengthens the financial position of Vision Credit Union.
Like Common Shares in any company, the equity raised becomes part of Vision Credit Union's capital reserves. Common Shares are not considered to be deposits and are therefore not guaranteed by the Credit Union Deposit Guarantee Corporation.
Are my other deposits guaranteed?
All of the Credit Union's deposit products (except Common shares) are guaranteed 100 % as to principal and interest, by the Credit Union Deposit Guarantee Corporation.
What is equity?
The "equity" or ownership of any business is represented by the owner's investment (Common Shares), along with earnings retained in the organization to help it grow. Members are "stakeholders" in the success and rewards of the Credit Union.
Do I have to own Common Shares to qualify as a member?
The Alberta Credit Union Act requires all members to own Common Shares.
How many shares do I have to purchase to become a member?
Vision Credit Union specifies that all members own a minimum of one Common Share, at a par value of $1.
What are the benefits of owning Common Shares?
As a member of Vision Credit Union, you participate in the profits of our organization. Dividends are distributed to members in proportion to their business dealings.
In addition, equity dividends will be paid in the manner recommended by the Board of Directors.
All dividends are currently distributed in the form of additional Common Shares.
Are Common Shares redeemable?
Members who wish to redeem Common Shares will submit a written request to the Board of Directors. The Board may redeem shares at a par value of $1 per share provided the redemption is not prohibited by the Credit Union Act, Regulation or Vision Credit Union's bylaws.
The Board will approve the redemption of Common Shares under the following circumstances;
1) A member moves out of the trading area;
2) Death of a member.
The Board of Directors use their discretion in approving the redemption of Common Shares for reasons other than those listed above.
For more information concerning Vision Credit Union’s policies and bylaws, please contact your branch.