Servus Credit Union bylaws define membership, shareholding, voting and governance.
Important information about recent bylaw changes:
At Servus’ 2013 Annual General Meeting, members approved a bylaw change to ensure more member voices would be heard if a demutualization motion is ever made.
Why was this motion brought forward at the AGM?
Servus Board of Directors felt that the 1%, or approximately 3,900 members, previously required to vote on a demutualization motion would not appropriately represent the wishes of Servus’ total membership of nearly 390,000 members. By increasing that number to 2.5% or approximately 10,000 members, they are more confident that the wishes of our members will be heard and respected if demutualization was ever proposed.
Does this change how I bank with Servus or affect my membership in any way?
No. This is an administrative change that does not affect the services we provide to our members or change your relationship with Servus Credit Union at all. Your accounts, services, shares and all your rights and privileges as a Servus member remain exactly the same.
How did the bylaws change?
At the 2013 AGM, members voted to increase the percentage of the members required to consider a demutualization motion from 1% (approximately 3,900) to 2.5% (approximately 10,000). This means more members would have their voices heard if someone ever brought forward a motion to demutualize the credit union.
What is demutualization?
Demutualization is a process that can be used to change a member-owned co-operative into a for-profit corporation.
Why is demutualization even an option in Servus’ bylaws?
All member-owned co-operatives are required by legislation to have a process in place in case a member ever wanted to propose changing the business-model of the organization. All credit unions have clauses in their bylaws about demutualization.
Is someone trying to change Servus into a for-profit bank?
No. We have not received any motions, requests or other indication that any member is pursuing demutualization of Servus Credit Union. This bylaw change was brought forward to protect the best interests of our members and ensure a more appropriate number of members would be required to pass or defeat such a motion.