BILL NO. 50

(as introduced)

1st Session, 59th General Assembly
Nova Scotia
53 Elizabeth II, 2004



Government Bill



Credit Union Act
(amended)



The Honourable Kerry Morash
Minister of Environment and Labour



First Reading: April 15, 2004

(Explanatory Notes)

Second Reading: April 26, 2004

Third Reading: May 14, 2004 (LINK TO BILL AS PASSED)

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Explanatory Notes

Clause 1


Clause 2 amends the procedure for applying for incorporation as a credit union.

Clause 3 provides that where a credit union is carrying on business under a name other than its full legal name it is no longer necessary to include "credit union" or "caisse populaire" in such name.

Clause 4 permits greater flexibility when choosing a name for a credit union.

Clause 5 repeals Section 18 of the Act to clarify that prohibited businesses are those set out in the Act or the regulations.

Clause 6 amends the provision of the Act dealing with a patronage refund.

Clause 7 simplifies the process when a credit union pays a dividend on shares and makes the process consistent with the practice in other jurisdictions.

Clause 8 revises the procedure for accepting applications for membership in a credit union.

Clause 9 removes references to ordinary by-laws in Section 62 of the Act.

Clause 10 clarifies the record date for determining which members of the credit union are entitled to vote at a meeting of the members of the credit union.
Clause 11 requires copies of information related to a special resolution to be made available at the offices of the credit union at least ten days before the date of the meeting at which the special resolution will be considered.

Clause 12 permits a credit union to make available to its members copies of any proposal and supporting documents at the offices of the credit union at least ten days before the meeting at which the proposal will be considered rather than requiring the proposal and supporting documents to be sent by the credit union to all members prior to the meeting.

Clause 13 clarifies the process for calling a special meeting of the credit union.

Clause 14

Clause 15 provides that a director may participate in a meeting by telephone where all of the directors participating in the meeting consent.

Clause 16 provides that a committee appointed by the directors of a credit union has no authority to hire or establish the terms of employment of the general manager of the credit union.

Clause 17 requires the annual financial statements to be made available to members of the credit union at the offices of the credit union at least ten days before the annual meeting.

Clause 18 requires the report of the auditor of a credit union to be made available at least fifteen days before the date of the annual meeting rather than the present requirement of ten days.

Clause 19 removes a provision in the Act that is inconsistent with other provisions in the Act.

Clause 20 adds to the powers of the Nova Scotia Credit Union Deposit Insurance Corporation.

Clause 21 amends the qualifications for a person to be appointed to the board of the Corporation.

Clause 22 provides that a member of the board of the Corporation may be re-appointed for such maximum number of consecutive terms as is determined in the by-laws of the Corporation.

Clause 23 provides that a majority of the appointed members of the board of the Corporation constitutes a quorum.

Clause 24 makes several housekeeping changes to the by-law-making authority of the Corporation.

Clause 25 updates Section 178 of the Act which sets out the provisions of the Act that apply to the Corporation.

Clause 26 clarifies that proxy voting may be provided for in the by-laws of the Credit Union Central of Nova Scotia.

Clause 27 requires that the right to vote by proxy and the establishment of a credit committee and an audit committee be included in the charter by-laws of the Central.

Clause 28 requires a director of the Central to complete a director training program as determined by the Central.

Clause 29 clarifies the provisions of Parts VII and VIII of the Act that apply to the Credit Union Central.

Clause 30 provides that where a credit union has been placed under the supervision of a supervisor, the supervisor must meet with the members of the credit union to explain the supervision and the rationale for any action taken by the supervisor pursuant to the Act.

Clause 31 provides that the Act comes into force on proclamation.

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An Act to Amend Chapter 4
of the Acts of 1994,
the Credit Union Act

1 Section 3 of Chapter 4 of the Acts of 1994, the Credit Union Act, is amended by

(a) striking out "Registrar" in the third line of clause (i) and substituting "Superintendent"; and

(b) striking out clause (x).

2 Section 5 of Chapter 4 is repealed and the following Section substituted:

3 Subsection 10(3) of Chapter 4 is amended by striking out ", provided that the words "credit union" or "caisse populaire", as the case may be, are included in such name" in the fourth, fifth and sixth lines.

4 Clause 12(1)(d) of Chapter 4 is amended by striking out ""Loan" or".

5 Section 18 of Chapter 4 is repealed.

6 (1) Subsection 32(1) of Chapter 4 is amended by striking out "prescribed by them and approved by the members of the credit union at a general meeting" in the last three lines and substituting "approved by the resolution of the directors".

(2) Subsection 32(2) of Chapter 4 is repealed.

7 Section 35 of Chapter 4 is amended by striking out "the directors and confirmed at a general meeting of members of the credit union" in the third, fourth and fifth lines and substituting "a resolution of the directors".

8 Subsection 56(1) of Chapter 4 is repealed and the following subsection substituted:

9 (1) Subsection 62(1) of Chapter 4 is amended by striking out "ordinary by-laws or" in the fourth line.

(2) Subsection 62(4) of Chapter 4 is repealed.

10 Section 66 of Chapter 4 is amended by adding "and vote at the meeting" immediately after "members" in the second line.

11 (1) Subsection 67(5) of Chapter 4 is amended by

(a) striking out "(a)" in the first line of clause (a);

(b) striking out "; and" in the last line of clause (a) and substituting a period; and

(c) striking out clause (b).

(2) Section 67 of Chapter 4 is further amended by adding immediately after subsection (5) the following subsection:

12 (1) Subsection 69(2) of Chapter 4 is repealed and the following subsections substituted:

(2) A credit union shall give notice of the meeting at which a proposal is to be presented.

(2A) A member submitting a proposal shall provide a statement outlining the intent of the proposal in sufficient detail to permit members reviewing the proposal to form a reasonable judgement regarding the proposal.

(2B) Copies of a proposal referred to in subsection (1) and any supporting information shall be made available at the registered office of the credit union at least ten days before the meeting at which the proposal will be considered.

(2) Subsection 69(4) of Chapter 4 is repealed.

(3) Subsection 69(5) of Chapter 4 is amended by

(a) adding ", (2A), (2B)" immediately after "(2)" in the second line; and

(b) striking out clause (a) and substituting the following clause:

(a) the proposal is not submitted to the credit union at least sixty days before the first anniversary date of the previous annual meeting of the members;

13 (1) Subsection 78(1) of Chapter 4 is amended by striking out "or percentage of members as the charter" in the third line and substituting "as the".

(2) Section 78 of Chapter 4 is further amended by adding immediately after subsection (1) the following subsections:

14 (1) Subsection 82(1) of Chapter 4 is amended by adding immediately after clause (c) the following clause:

(ca) a member who is in arrears for more than ninety days under a debt obligation to a credit union;

(2) Section 82 of Chapter 4 is further amended by adding immediately after subsection (2) the following subsection:

(3) Within a period specified by the Central,

(a) a person elected or appointed for the first time as a director of a credit union; or

(b) where required by the Central, every director of a credit union who has not completed a director training program,

shall complete a credit union director training program determined by the Central.

15 Subsection 89(6) of Chapter 4 is amended by striking out "of the credit union" in the second line and substituting "participating in the meeting".

16 Subsection 90(4) of Chapter 4 is amended by adding immediately after clause (b) the following clause:

17 Section 106 of Chapter 4 is repealed and the following Section substituted:

18 Clause 119(1)(a) of Chapter 4 is amended by striking out "ten" in the third line and substituting "fifteen".

19 Section 120 of Chapter 4 is repealed.

20 Section 157 of Chapter 4 is amended by

(a) adding "or determine" immediately after "arrange" in the first line of clause (o); and

(b) adding immediately after clause (p) the following clauses:

21 (1) Subsection 160(1) of Chapter 4 is amended by

(a) striking out "person" in the first line and substituting "citizen or permanent resident of Canada and resident of the Province"; and

(b) adding immediately after subclause (d)(i) the following subclause:

(2) Section 160 of Chapter 4 is further amended by adding immediately after subsection (3) the following subsection:

22 Section 161 of Chapter 4 is amended by adding "and may be re-appointed for such maximum number of consecutive terms as is determined in the by-laws of the Corporation" immediately after "appointed" in the fourth and fifth lines.

23 Subsection 165(1) of Chapter 4 is amended by adding "appointed" immediately after "the" the first time it appears in the first line.

24 Clauses 166(2)(g) and (h) are repealed and the following clauses substituted:

25 Section 178 of Chapter 4 is repealed and the following Section substituted:

26 Section 203 of Chapter 4 is amended by adding immediately after subsection (3) the following subsection:

27 Section 207 of Chapter 4 is amended by adding immediately after clause (e) the following clauses:

28 Section 210 of Chapter 4 is amended by adding immediately after subsection (2) the following subsection:

29 Section 211 of Chapter 4 is repealed and the following Section substituted:

30 Section 243 of Chapter 4 is amended by adding immediately after subsection (2) the following subsection:

31 This Act comes into force on such day as the Governor in Council orders and declares by proclamation.

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