Boards of Directors for Six Credit Unions in the Kootenay, Columbia Valley and Boundary Regions Agree to Proceed with Regulatory Application for Consent to Present Merger to Members.
Approval of the business case for the merger is a significant milestone in the process.
The Boards of Directors for the six credit unions exploring a potential merger voted to proceed with submitting an application to the Financial Institutions Commission of BC (FICOM), requesting consent to present the potential merger to their respective memberships. If FICOM grants consent, the members of the six credit unions will all vote on whether or not to proceed with the merger. It will require a 2/3 or greater majority in favour for the merger to go ahead.
The Boards of Directors for the six credit unions exploring a potential merger voted to proceed with submitting an application to the Financial Institutions Commission of BC (FICOM), requesting consent to present thepotential merger to their respective memberships for a membership vote.
The Board of Directors for each of the six credit unions considering a merger –Columbia Valley Credit Union, East Kootenay Community Credit Union, Grand Forks Credit Union, Heritage Credit Union, Kootenay Savings Credit Union and Nelson & District Credit Union –reviewed and analyzed the merger business case. After discussing the opportunities and risks associated with the merger, each of the six Boards agreed to move to the next step in the merger process, which is an application to the regulator (FICOM), seeking consent to present the merger question to members.
FICOM will commence its in-depth review once all required application documents have been submitted to the regulator. Should FICOM provide their consent, each of the six credit unions will proceed with a membership vote to determine if their members support the merger.
“This is an important and significant milestone in our merger journey,” stated Michael Strukoff, designate Chair of the Board for the Exploring Strength and Unity merger initiative. “It demonstrates the commitment of the Boards of Directors and management teams of the six credit unions to the benefits and opportunities a merger would bring to our members, employees and communities.”
It is important to note that no merger is possible without the approval of members. Should FICOM give their consent,members will be provided with more details, information and the chance to engage in conversation about the potential merger in the coming months, well in advance of voting by the membership.
See previous story, published in early April of 2018. There were originally seven credit unions considering the merger, but one – the Creston and District Credit Union -- has since withdrawn from the process.