Structure & Principles of Good Governance
The credit union must develop and maintain an accessible, clear and co-operative structure.
Members at the centre
The Board recognises the important role of members within the credit union. Members have clearly defined rights and responsibilities and must hold the Board of directors to account for the policies and performance of their credit union. Members should ensure that policies and performance are in accordance with the stated objects of the credit union and in their own best interests. The Board should make known to the general membership the general nature of the credit unions as a co-operative, its democratic structures and the methods and standards by which members can be elected to those structures.
This means that…
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34 |
The credit union has available to members at least one leaflet/booklet that outlines the nature of the credit union as a business and a co-operative member-owned organisation. REQ |
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35 |
The Annual Meeting of the credit union is actively promoted to members to ensure the highest possible level of member participation. REQ |
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36 |
The credit union takes positive steps to reflect and monitor the diversity of its membership by regularly evaluating the demographic and cultural nature of members and the range of skills and experience available to the credit union via its membership and using this information to formulate a membership development strategy. REQ |
Boards and Committees
Every credit union should be headed by an effective Board which is collectively responsible for the success of the business. To this end there is in place a formal, rigorous, transparent and wide reaching election procedure to determine the composition of the Board, Supervisory Committee and Credit Committee (where applicable).
This means that…
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37 |
The Board size of the credit union reflects the nature, diversity and scale of the enterprise and the complexity of the risks faced by the credit union. The Board has a minimum of five members in line with the rules of the credit union. The number on the Board is agreed on a regular basis by members at the AGM. REQ |
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38 |
Directors are subject to election by members and to re-election thereafter at intervals of no more than three years. The names of candidates submitted for election are accompanied by sufficient biographical details, information about other directorships held, and relationships with employees of the credit union and other Board members. In the case directors co-opted to the Board, the co-option will be ratified at the next available members’ meeting at which the biographical details as outlined above will be made available to members. A letter of appointment and terms of reference is provided on election with a broad indication of the time involved and the work and responsibilities expected of directors. REQ |
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39 |
The Board appoints a Chairperson/President from its own number whose responsibility it is to provide leadership to the Board and act as a link between elected committees employees, volunteers and members. The position of Chairperson is voted upon by the Board each year at the first Board meeting following the AGM. No one person holds the office of Chairperson for more than five consecutive years. REQ |
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40 |
Attendance figures for Board meetings, details of committee membership, a summary of training progress and achievements are reported in the annual report of the credit union. GOLD |
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41 |
On the agreement of a minimum of three or a third of the Board, whichever is the greater, the Board will access independent professional advice at the credit union’s expense where directors judge it necessary to discharge their responsibilities as directors. GOLD |
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42 |
The Board may wish to co-opt up to two independent unpaid directors to its number when a gap in particular skills and experiences on the Board has been identified. If the Board is inclined to this view, it will set out to members why it feel the credit union would benefit from co-option and members will be given the opportunity to vote on this policy at a members’ meeting. The names of those sought for co-option will be given to members at the AGM as required in the rules of the credit union. Co-opted directors will be appointed for specified terms and their continuing appointment will be reaffirmed by members at the Annual General Meeting. It is recommended that in order to safeguard the democratic status of the Board a credit union should co-opt no more than two non-elected directors. A co-optee will not be elected or appointed to chairmanship of the Board. GOLD |
Responsibilities within the credit union
The roles and responsibilities of Board, committees and managers are established clearly and are included in the policies and procedures of the credit union. The Board has established clear lines of communication and reporting procedures to enable an accessible and participative structure.
This means that…
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43 |
The Board maintains extensive human resources policies and practices that reflect the needs and requirements of the credit union as a good employer. Each employee is provided with information on these policies via a staff handbook. REQ |
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44 |
Each person on election, appointment or employment receives a statement of roles and responsibilities and job description appropriate to the position they are elected/appointed to. REQ |
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45 |
The Board documents and reviews on an annual basis, the functions of individual directors in a operations role, delegated officers, the chief executive, or senior managers and sub-committees. The document outlines the roles and responsibility and reporting structures as well as lines of communication and division of responsibility sufficient to allow them to discharge their duties. GOLD |
