Understanding Common Shares
Overview
All individuals and organizations must purchase at least one Common Share when they join Servus. Below you'll find highlights of our Common Share policy to guide you in managing your Common Shares.
The purpose of the Common Share Policy is to maintain a prudent equity base in Servus Credit Union Ltd. and to provide each credit union member with an opportunity to share in the surplus earnings of the credit union.
Common Shares are part of the credit union members' equity. Common Shares are considered "at risk" and are not guaranteed by the Credit Union Deposit Guarantee Corporation.
Ownership/Control of Funds
All funds on deposit in Common Shares are subject to applicable income tax regulations. The Board of Directors retains complete control over Common Shares funds.
Common Shares cannot be used as security for any loan or credit facility.
Minimums and Maximums
To open an account with Servus Credit Union, a member must purchase a minimum of $1.00 in Common Shares.
A member (aged 18 and over) or entity may purchase up to $20,000 in additional Common Shares (Registered or Non-Registered), subject to certain limitations. No member or entity may hold more than $200,000 in Common Shares.
The minimum initial deposit for member contributions is $1,000 (after the minimum requirement of $1.00). If a member chooses to deposit monthly, the monthly sum must be $100 or greater.
Any amount of Common Shares exceeding $200,000 will be paid out to the member annually.
Members are permitted to transfer non-registered Common Share funds (less the minimum requirement) into registered Common Share funds.
Dividends
Dividends are determined annually by the Board of Directors.
Once all a member's common shares have been redeemed they are no longer eligible to receive Profit Share in the year they are redeemed.
Payout of Shares
All Common Share redemptions are subject to approval by the President and CEO of Servus Credit Union or his designate. Redemptions are also subject to restrictions under the Credit Union Act; and Regulations and Bylaws of Servus Credit Union.
Redemption requests must be submitted by application on or before November 15 in any given year for payout by December 20 of that year.
Members or entities are eligible for immediate payout of Common Shares in the following scenarios:
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shares total under $500 and the member closes all accounts (but is not moving);
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an incorporated business ceases all business activities;
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the member/entity moves outside of Servus' trading area;
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death (at time of account closure); or
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a trust account is signed over to a child (up to $500 in shares).
All other redemption requests must be submitted by application. A minimum of $500 applies to application redemption requests. All granted requests will be redeemed following fiscal year end in November.
Redemption requests must be submitted by application on or before November 15 in any given year for payout by December 20 of that year.
