Due to ongoing Covid-19 restrictions, it is not possible for St. Canice’s Credit Union to hold an AGM this year.
You may have heard or read in the media, that the current legislation for credit unions requires the AGM to be a physical meeting not a virtual one, therefore new legislation is required to allow us to hold a virtual AGM. The Department of Finance announced on Friday 20th November that the Finance (Miscellaneous Provisions) Bill 2020 has been listed as priority legislation, this new legislation will allow credit unions to hold a virtual AGM and they hope to have it enacted before the year-end, although the timeline is now a matter for the Oireachtas.
Once this new legislation is enacted we would then be permitted to hold a virtual AGM. We cannot plan the date without this legislation therefore, St. Canice’s Kilkenny Credit Union Ltd. 2020 AGM will be held as early in 2021 as this new legislation and planning allow.
All matters relating to loan interest rebates or savings dividends happens at the AGM. Dividends and loan interest rebate proposals are based on a balance of past financial performance as well as future protection of the credit union. The Central Bank of Ireland expect that priority be given to maintenance and building of reserves over the payment of any distribution to members and have recommended that no dividend or interest rebate be paid this year.
This year we made a surplus of €2.6 million and it is important that this surplus is transferred to reserves in order to protect the credit union for the financial and economic uncertainty which Covid-19 has brought.
St. Canice’s CU has supported and continues to support members throughout the Covid-19 pandemic. Whilst we are not in a position to pay a savings dividend or loan interest rebate this year, we reduced interest rates across many of our loan products in 2020 which was of great financial benefit to our members.
We understand this unavoidable situation is as frustrating and disappointing for members as it is for the board, volunteers and staff of St. Canice’s Credit Union however we continue to be a successful credit union with assets of €457 million and look forward to continuing to provide financial services to our members.