Credit Unions (Amendment) Bill - Clause 12 - Application of surplus - Northern Ireland Assembly

Clause 12 - Application of surplus

Clause 12 amends Article 36 of the 1985 Order in relation to the application of surplus for social, cultural or charitable purposes. Clause 12 also removes the requirement that a dividend be paid on all paid-up shares in a credit union before an amount of surplus can be applied for other purposes. The amendments apply only in relation to a year of account beginning on or after commencement.

It is understood that this may enable credit unions to pool surplus funds for social and charitable purposes and also to enable credit unions to invest collectively in social projects, such as housing or local infrastructure

42. Do you support enabling credit unions to pool surplus funds for social, charitable or cultural purposes supports community development and financial inclusion rather than having an automatic obligation to pay a dividend?

Yes No

43. Should the Bill include an explicit emphasis on the need for a balance between financial sustainability of credit unions and collective social impact?

Yes No

44. Do you have any other comments on Clause 12 or suggested amendments for this clause?