CAP. 314 CREDIT UNIONS ACT BELIZE
CREDIT UNIONS ACT
CHAPTER 314
REVISED EDITION 2000
SHOWING THE LAW AS AT 31ST DECEMBER, 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner
under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,
Revised Edition 1980 - 1990.
This edition contains a consolidation of the following laws- Page
ARRANGEMENT OF SECTIONS 3
CREDIT UNIONS ACT 9
Amendments in force as at 31st December, 2000.
BELIZE
CREDIT UNIONS ACT
CHAPTER 314
REVISED EDITION 2000
SHOWING THE LAW AS AT 31ST DECEMBER, 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner
under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,
Revised Edition 1980 - 1990.
This edition contains a consolidation of the following laws- Page
ARRANGEMENT OF SECTIONS 3
CREDIT UNIONS ACT 9
Amendments in force as at 31st December, 2000.
THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Credit Unions [CAP. 314
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CHAPTER 314
CREDIT UNIONS
ARRANGEMENT OF SECTIONS
1. Short title.
2. Interpretation.
3. Appointment of Registrar of Credit Unions.
4. Register to be kept.
5. Memorandum of association.
6. Contents of memorandum.
7. Certificates of incorporation.
8. Effect of certification of incorporation.
9. Publication of notice of incorporation.
10. Restriction on name.
11. Change of name of Credit Union.
By-Laws
12. By-laws.
Capital and Shares
13. Capitalisation.
14. Shares, how purchased.
15. Interest.
16. Transfer of shares.
17. Transfer.
18. Liability of shareholder.
Objects and Powers
19. Objects.
20. Powers.
21. Land.
22. Entrance fee.
23. Change of registered office.
Organisation
24. First meeting.
25. Election of directors and committees.
26. Appointment of officers.
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27. Remuneration.
28. Returns to Registrar.
Duties of Directors
29. Duties.
Credit Committee and Loans
30. Jurisdiction of Credit Committee.
31. Approval of loans by loans officers.
32. Purpose of loans.
33. Applications.
34. Liability guarantor.
35. Restrictions.
36. Prohibitions.
37. Interest rates.
38. Repayment.
39. Duties.
Borrowing Powers
40. Powers and procedure.
41. Powers of hypothecation.
Reserve Fund
42. Duties of directors.
43. Investments.
44. Purposes of fund.
Educational Fund
45. Educational fund.
Dividends
46. Procedure for payment.
Membership and Meetings
47. Minimum membership.
48. Membership of Credit Union.
49. Restriction of numbers.
50. Infant member.
51. Register of members.
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52. Expulsion of member.
53. Withdrawal of member.
54. Payments to expelled or withdrawing member.
55. Effect of expulsion or withdrawal.
56. Officers, etc., not to withdraw or transfer shares.
57. Annual and special meetings.
58. Voting.
Joint Accounts
59. Joint accounts.
Fiscal Year
60. Fiscal year.
61. Federation of Credit Unions.
Obligations of Officers and Members
62. Security.
63. By-laws binding.
64. Debts due by members.
Returns
65. Annual return.
66. Other returns.
67. Form of return.
Inspection of Credit Union
68. Duties of Registrar.
Offences and Penalties
69. Offences.
70. Liability of officers and directors.
71. Use of words “Credit Union”.
72. Penalty.
Dissolution
73. By consent of members.
74. Dissolution by the Registrar.
75. Settlements in event of dissolution.
76. Return.
General
77. Appeal where registration refused.
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78. Fees payable to Registrar.
79. Disposal of fees.
FIRST SCHEDULE
SECOND SCHEDULE
CHAPTER 314
CREDIT UNIONS
[28th June, 1947]
1. This Act may be cited as the Credit Unions Act.
2. In this Act, unless the context otherwise requires-
“Credit Union” means a Credit Union incorporated under this Act;
“Registrar” means the Registrar of Credit Unions appointed under this Act;
“member”, “shareholder” and “subscriber” shall, where a share is held by a
member, shareholder or subscriber jointly with any other, include a reference to
a member who holds shares jointly, a joint shareholder and a joint subscriber,
and such members, shareholders and subscribers shall all be reckoned as one
person, but one of them only shall be entitled to vote for any purposes of this
Act.
Ch. 102,
R. L., 1958.
CAP. 247.
R. E. 1980-1990.
5 of 1963.
40 of 1963.
33 of 1973.
3 of 1978.
13 of 1982.
22 of 1987.
Short title.
Interpretation.
3. The Governor-General shall appoint a person to administer this Act
and such person shall be called the Registrar of Credit Unions.
4. The Registrar shall keep a register of all credit unions registered under
this Act.
5.-(1) Any ten or more persons resident in Belize who desire to associate
themselves together may, in the presence of a witness, sign in duplicate a memo-
randum of association, and if such memorandum is approved by the Registrar,
cause it to be filed in his office.
(2) Such memorandum of association, printed or typewritten, shall be in
the form in the First Schedule and there shall be attached to the memorandum
an affidavit verifying the signatures to such memorandum.
(3) Such persons, after signing the memorandum of association, shall ap-
point a provisional secretary who shall hold office until a secretary is appointed
in accordance with section 26 of this Act.
6. The memorandum of association shall state-
(a) the name of the Credit Union;
(b) the address in Belize at which the registered office of the Credit
Union is to be situated;
(c) the par value of its shares;
(d) the names and addresses of the subscribers to the memoran-
dum and the number of shares subscribed by each.
7. If the Registrar is satisfied that incorporation is economically advis-
able and if he otherwise approves of incorporation, on the memorandum of
association being filed, he shall issue to the provisional secretary a certificate
First Schedule.
Contents of
memorandum.
Memorandum of
association.
Appointment of
Registrar of Credit
Unions.
Register to be
kept.
Certificates of
incorporation
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of incorporation in the form in the Second Schedule.
8. The subscribers to the memorandum and such other persons as may
thereafter become members of the Credit Union shall be a body corporate
under its registered name, and the certificate shall be conclusive evidence of
incorporation under this Act.
9. The Registrar shall cause a notice of incorporation under the preceding
section to be published in two issues of the Gazette.
10. No Credit Union shall be registered under a name identical with that by
which any other existing Credit Union has been registered, or so nearly resem-
bling the same as to be likely to deceive, and the words “Credit Union, Lim-
ited” shall form part of the name of every Credit Union registered under this
Act.
11.-(1) With the approval of the Registrar, a Credit Union at any general meet-
ing, or at any special meeting called for the purpose, may change its name by
resolution passed by not less than two-thirds of the members present and en-
titled to vote thereat.
(2) Where a Credit Union changes its name pursuant to the provisions of
subsection (1), the Registrar shall enter the new name in the register in place of
the former name, shall issue a certificate of incorporation altered to meet the
circumstances of the case, and forthwith shall cause a notice thereof to be pub-
lished in the Gazette and at least one newspaper.
(3) A change of name by a Credit Union under this section shall not affect
any rights or obligations of the Credit Union or render defective any legal pro-
ceedings by or against the Credit Union, and any legal proceedings that might
have been continued or commenced against it by its former name may be con-
tinued or commenced against it by its new name.
(4) Every Credit Union shall paint or affix, and keep painted or affixed, its
Restriction on
name.
Change of name
of Credit Union.
33 of 1973.
Publication of
notice of
incorporation.
Second Schedule.
Effect of
certificate of
incorporation.
name in letters easily legible in a conspicuous position on the outside of its
office or place in which its business is carried on.
By-Laws
12.-(1) The Registrar shall prepare and submit for approval by the Minister
standard by-laws not inconsistent with this Act, which shall apply to every
Credit Union incorporated hereunder.
(2) The Registrar shall, upon request, supply a copy of the standard by-
laws.
(3) A Credit Union may by a two-third vote of the members present at an
annual meeting or at a meeting called for the purpose make by-laws for the
Credit Union to be known as supplementary by-laws.
(4) Such supplementary by-laws may be in addition to, or in amendment
or repeal of, any standard by-laws, but no supplementary by-laws shall be of
any effect until the same have been approved by the Registrar and supplemen-
tary by-laws which seek to amend or repeal standard by-laws shall not be-
come operative until approved by the Registrar.
Capital and Shares
13.-(1) The capital of every Credit Union shall be unlimited in amount and
shall be divided into shares of a par value of not less than two dollars each.
(2) The capital may be reduced by the total or partial withdrawal of the
amounts contributed:
Provided that the capital shall not be reduced below the amount estab-
lished by the by-laws when the association was founded.
By-laws.
40 of 1963.
Capitalisation.
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14. The shares may be purchased by instalments at such times and in such
manner as may be determined by by-laws.
15. A shareholder shall receive dividends only on the paid-up portion of his
shares.
16.-(1) Subject to the provisions of subsections (2) and (3) of this section,
shares may be assigned, transferred or repurchased by a Credit Union.
(2) No assignment, transfer or repurchase shall be valid unless approved
by the directors elected in accordance with section 25 of this Act.
(3) No assignment, transfer or repurchase shall be approved by the direc-
tors if the total number of shareholders is thereby reduced below ten.
17.-(1) On the death of a member, a Credit Union may transfer the share or
interest of the deceased member-
(a) to the person nominated in accordance with the rules made in
that behalf; or
(b) to the person specified in the application of the Union made by
the person so nominated within six months of the death; or
(c) to the personal representative of the deceased member where
no person has been nominated.
(2) The Credit Union may, instead of transferring the share or interest, pay
to the nominee or the legal representative a sum representing the value thereof
as ascertained in accordance with the rules or by-laws.
(3) The Credit Union shall also pay all other moneys due from it to the
deceased member to the nominee, otherwise to the personal representative.
Shares, how
purchased.
Interest.
Transfer of
shares.
Transfer.
40 of 1973.
(4) The transfer and the payment made by the Union in accordance with
this section shall be valid and effectual against demand made upon the Union
by any other person.
18. Every shareholder shall be individually liable to the creditors of the
Credit Union for debts and liabilities of the Credit Union to an amount equal to
the amount unpaid on the shares held by him and shall continue so liable until
the whole amount of his shares have been paid up:
Provided that no shareholder shall be liable to an action in respect of such
unpaid balance until an execution at the suit of the creditors against the Credit
Union has been returned unsatisfied in whole or part.
Objects and Powers
19. The objects of a Credit Union shall be-
(a) to promote thrift among its members;
(b) to receive the savings of its members either as payment on
shares or as deposits;
(c) to make loans to members exclusively for provident or
productive purposes.
20. For the purpose of carrying out its objects, a Credit Union may, sub-
ject to the provisions of this Act-
(a) deposit money in any chartered bank in Belize or in the
Government Savings Bank;
(b) invest, to an extent not exceeding twenty-five per centum of
its capital, in any stock, debentures, debenture stock, funds
or securities in which trustees may invest funds by virtue of the
Objects.
Powers.
Liability of
shareholder.
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Trustee Act, 1925, or in any securities or local loan of the
Government of Belize or in the paid-up shares of co-operative
societies;
(c) borrow money as hereinafter provided;
(d) draw, make, accept, endorse, execute and issue promissory
notes, bills of exchange, bills of lading, warrants and other
negotiable or transferable instruments;
(e) make, with the approval of the Registrar, loans to a Credit
Union or to a co-operative society registered under the Co-
operative Societies Act;
(f) do all such other acts and things as are incidental or conducive
to or consequential upon the attainment of its objects.
21. A Credit Union may in its own name hold, purchase or take on lease
any land, and may sell, exchange, mortgage or lease the same.
22. A Credit Union may charge an entrance fee not exceeding that authorised
by the by-laws.
23. A Credit Union may change its registered office on written notice to the
Registrar.
Organisation
24. Within ten days after receipt by the provisional secretary of the certifi-
cate of incorporation, he shall notify each of the applicants for incorporation
that the certificate has been received, and shall call a meeting of the Credit
Union for the organisation thereof.
Land.
Entrance fee.
Change of
registered office.
First meeting.
15 Geo.
5 c. 18 (U.K.).
CAP. 313.
25.-(1) At the meeting referred to in the preceding section, the Credit Union
shall elect a Board of Directors of not less than five members, a Credit Com-
mittee of not less than three members, and a Supervisory Committee of three
members.
(2) The persons so elected shall hold office until their successors are elected
at the first annual meeting.
(3) The President may be elected a member of the Credit Committee, but
no director or member of the Credit Committee shall be a member of the
Supervisory Committee.
26.-(1) At their first meeting, which shall be held within ten days after their
election or at any subsequent meeting in the event of a vacancy among the
officers, the directors shall appoint from their own number a President and a
Vice-President, and shall appoint a secretary and a treasurer or a secretary-
treasurer, who may or may not be a director.
(2) At their first meeting which is held in pursuance to subsection (1), the
Board of Directors may appoint persons who shall be loan officers, and whose
functions shall be in addition to those of the Credit Committee.
27. No member of the Board of Directors or of the Credit or Supervisory
Committee shall, as such, receive remuneration, but the secretary and the trea-
surer or secretary-treasurer may be paid such salaries as the members may
determine at any annual or special meeting.
28. A record of the names and addresses of the directors, the members of
the committees and of the officers shall be filed with the Registrar within ten
days after election or appointment.
Remuneration.
Returns to
Registrar.
Election of
directors and
committees.
Appointment of
officers.
13 of 1982.
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Duties of Directors
29. Subject to the provisions of this Act, the directors shall have the gen-
eral management of the affairs of a Credit Union and in particular shall-
(a) act on applications for membership and on the expulsion of
members;
(b) determine the maximum individual share holdings and the
maximum individual loan which may be made with or without
security;
(c) determine interest rates on loans and on deposits;
(d) declare dividends;
(e) fix the form and amount of the security which shall be required
from officers and employees handling money;
(f) fill vacancies on the Board of Directors and on the Credit
Committee until the next annual meeting when successors are
chosen;
(g) perform such other duties as are required by this Act and by
the by-laws.
Credit Committee and Loans
30.-(1) The Credit Committee shall have the general supervision of all loans to
members and subject to any general order of the Board and the provisions of
this Act, shall fix the amount of, and rate of interest on, each loan.
(2) At least a majority of the Credit Committee shall be present when a
loan is under consideration and approval of a loan shall be the unanimous deci-
Jurisdiction of
Credit
Committee.
Duties.
sion of the members present.
31.-(1) Any application for a loan not exceeding five hundred dollars or one
hundred and fifty per centum of the savings or share held by the member,
whichever is less, may be approved by any loan officer appointed under sec-
tion 26.
(2) The provisions of this Act with regard to security, guarantee and other
arrangements shall apply to a loan approved by any loan officer in the same
manner as they apply to loans approved by the Credit Committee.
32. Every loan shall be for a provident or productive purpose.
33.-(1) The Credit Committee shall require security to be given on all loans in
excess of an amount to be fixed by the Registrar.
(2) The Credit Committee shall determine the security and guarantors which
shall be required for each loan and the conditions of repayment.
(3) An assignment of shares or of deposits or the endorsement of a note
may be taken as security.
34.-(1) On the instrument creating liability on the part of a guarantor there
shall be specifically stated the maximum amount for which such guarantor is
liable.
(2) That portion of a loan for which guarantors are required may be guar-
anteed by one or more persons each of whom shall be deemed to be sever-
ally, and not jointly, liable for an amount not exceeding-
(a) a sum equal to the total amount for which guarantors are
required after deduction of any payment made in reduction
of the loan; or
Liability guarantor.
Applications.
Approval of loans
by loan officers.
13 of 1982.
Purpose of loans.
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(b) the maximum amount specified in accordance with
subsection (1) of this section,
whichever is the less.
(3) The provisions of this section shall have effect notwithstanding anything
contained in the Bills of Exchange Act.
35. No director, officer or member of the Credit or Supervisory Commit-
tee shall be allowed to borrow in excess of the value of his shares and deposits
unless upon the unanimous vote of a majority of the other members of the
Board of Directors and of the Credit Committee and of the Supervisory Com-
mittee, sitting together, the said director, officer or member not being present
when the vote is taken.
36. No Credit Union shall lend money to or accept deposits from any per-
son who is not a member of the Credit Union:
Provided that a Credit Union, with the approval of the Registrar, may make
loans to another Credit Union or to a co-operative society registered under the
Co-operative Societies Act.
37. Interest rates on loans made by a Credit Union shall not exceed one
per centum per month on unpaid balances:
Provided that the rate of one per centum per month referred to in the
foregoing provisions of this section may be varied from time to time by the
Minister by Order published in the Gazette.
38. A borrower may repay his loan in whole or in part on any day on
which the office of the Credit Union is open for business.
CAP. 313.
Interest rates.
13 of 1982.
Repayment.
Prohibitions.
CAP. 245.
Restrictions.
Supervisory Committee
39. The Supervisory Committee shall-
(a) make an examination of the affairs of the Credit Union at least
quarterly and audit its books and, if deemed necessary by
them, call a meeting of the Credit Union for consideration of
the report of the Supervisory Committee;
(b) make or provide for an annual audit and submit a report
thereon to the annual meeting;
(c) fill vacancies in its own membership until the next annual meet-
ing when successors are chosen;
(d) if deemed necessary and by unanimous vote, suspend any
officer, and call a meeting of the Credit Union to consider
their report on such suspension;
(e) call a special meeting to consider any matter or matters which,
in their opinion, should be placed before the Credit Union.
Borrowing Powers
40. A Credit Union may from time to borrow moneys not exceeding in the
aggregate twenty-five per centum of its combined capital and surplus and
deposits, upon a vote of at least three-fourths of the members of the Board of
Directors, and may from time to time borrow moneys not exceeding in the
aggregate fifty per centum of its combined capital and surplus and deposits,
upon a vote of three-fourths of the members present, or one-third of the total
membership, whichever is the greater, taken at an annual meeting of the Credit
Union or at a special meeting called for the purpose, with those voting in
support of the resolution representing a majority of the shares issued:
Powers and
procedures.
13 of 1982.
Duties.
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Provided that the Minister may by Order published in the Gazette, from
time to time approve in respect of any Credit Union specified in that Order, that
the percentages of twenty-five and fifty respectively appearing in this section be
increased.
41. A Credit Union may charge, hypothecate, mortgage or pledge its real
or personal property, rights and powers, undertakings, including book debts
and unpaid calls of the Credit Union, to secure any liability for the repayment of
moneys borrowed in pursuance of a resolution passed under section 40.
Reserve Fund
42. The Board of Directors shall set aside as a reserve fund all entrance
fees and fines collected from members and at the end of each fiscal year, before
the declaration of a dividend, at least twenty per centum of the net earnings
until the reserve fund is at least equal to ten per centum of the assets from time
to time of the Credit Union.
43. The funds shall be invested by the Board of Directors either by deposit
in a bank licensed under the Banks and Financial Institutions Act, or other
financial institution approved by the Minister or in the Government Savings
Bank, in any stock, debentures, debenture stock, funds or securities in which
trustees may invest funds by virtue of the Trustee Act, 1925, or in any securi-
ties or local loan of the Government of Belize or in the paid-up share of co-
operative societies:
Provided that the income received from such investments shall form part of
the general revenue of the Credit Union.
44. The reserve fund shall be held as a reserve against bad loans or losses
and shall not be used for any other purpose except on liquidation.
Investments.
13 of 1982.
CAP. 263.
15 Geo. 5 c. 18
(U.K.).
Purposes of
fund.
Powers of
hypothecation.
Duties of
directors.
Educational Fund
45.-(1) If the by-laws so provide, the Board of Directors may, after making
provision for a reserve fund and before declaring a dividend, set aside an
amount not exceeding five per centum of the net earnings in a special fund to
be called “The Educational Fund” which shall be used for such educational
purposes as the Board of Directors may determine.
(2) Moneys from time to time in such fund shall be expended within three
years after they are set aside.
Dividends
46.-(1) After making provision for the reserve fund, as required by section
42, and for the Educational Fund, if any, the Board of Directors may declare
a dividend from the remainder of the net earnings and in such case shall present
its resolution to the annual meeting of the Credit Union for confirmation.
(2) Any dividend authorised at that meeting shall be paid on all shares
fully paid-up and in the possession of the same member throughout the previ-
ous fiscal year, except that shares which became fully paid-up during the pre-
vious fiscal year shall be entitled to a proportionate part of such dividend from
the first day of the month following such payment in full and in no case shall the
dividend declared by the Credit Union exceed six per centum per annum or
such other rate in lieu thereof as the Minister may fix by Order published in
the Gazette.
Membership and Meetings
47. Every Credit Union shall have a membership of at least ten.
48. The membership of a Credit Union is open to all residents of Belize.
Minimum
subscription.
Membership of
Credit Union.
13 of 1982.
Educational fund.
Procedure for
payment.
13 of 1982.
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49. Except with the sanction of the Registrar, no person shall be a member
of more than one Credit Union.
50.-(1) A person under the age of eighteen years may be a member of a Credit
Union but he shall not be capable of voting or being elected a director or a
member of a Credit Committee or Supervisory Committee unless he has at-
tained the age of eighteen years.
(2) Any such contract entered into by any such person with the Credit
Union, whether as principal or as surety, shall be enforceable at law or in equity
against such person notwithstanding his infancy.
51. A register, or list of shareholders, shall be kept by every Credit Union
and such register or list shall show and shall be prima facie evidence of-
(a) the names, addresses and occupations of the shareholders,
the number of shares held by them respectively, the number of
such shares and the amount paid or considered as paid thereon;
(b) the date on which each shareholder was registered;
(c) the date on which any shareholder ceased to be such.
52.-(1) The Board of Directors may by a two-thirds vote, at a meeting duly
called, expel a member from the Credit Union.
(2) The secretary shall, within five days from the date on which the mem-
ber is expelled, notify him in writing of the action of the Board of Directors.
(3) An appeal from the action of the Board of Directors may be taken by
the member to the next general meeting of the Credit Union:
Provided that written notice of intention to appeal shall be given by him to
Expulsion of
member.
Infant member.
3 of 1978.
Restriction of
membership to
one Credit
Union.
Register of
members.
the secretary within thirty days from the date of receipt of the notice men-
tioned in subsection (2) of this section.
(4) At such meeting a majority, of the members present may confirm or
rescind the action of the Board of Directors.
53. A member may withdraw from the Credit Union at any time on giving
such notice of withdrawal as may be required by the by-laws or such addi-
tional notice as, in any particular case, the Board of Directors may deem nec-
essary and is approved by the Registrar.
54. All amounts paid in on shares or as deposits, by a member who is
expelled or withdraws, and any relative dividends or interest shall be paid to
him as funds become available and after deducting all amounts due from him
to the Credit Union.
55. A member who is expelled or withdraws shall have no further rights in
the Credit Union but shall not, by such expulsion or withdrawal, be released
from any remaining liability to the Credit Union.
56.-(1) No member entrusted with or participating in the direct management
of the affairs of a Credit Union shall withdraw or transfer or otherwise dispose
of his shares, during the exercise of his functions.
(2) In case of insolvency of the Credit Union, any such withdrawal or
transfer made by him within four months preceding such insolvency shall be
null and void.
(3) Such member shall remain liable to the creditors of the Credit Union
to the extent of such shares so disposed of or transferred.
57.-(1) An annual general meeting shall be held within sixty days of the end of
the fiscal year.
Withdrawal of
member.
Payments to
expelled or
withdrawing
member.
Effect of expulsion
or withdrawal.
Officers, etc., not
to withdraw or
transfer shares.
Annual and
special meetings.
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(2) Special meetings may be called in the manner provided by the by-laws.
58. No member shall have more than one vote at any meeting and no mem-
ber may vote by proxy.
Joint Accounts
59. Joint shareholders may operate joint accounts with the Credit Union of
which they are members. Each joint shareholder shall be liable to the full extent
to the Credit Union as if he were a full member thereof. A joint shareholder
may borrow sums of money from the Credit Union subject to such restrictions
and such liabilities as a full member would be subject to.
Fiscal Year
60. The fiscal year of a Credit Union shall end on the thirty-first day of
March in each year.
61.-(1) Credit Unions incorporated or registered under this Act that desire to
associate as a Federation for the furtherance of their common interests and the
benefit of their members shall execute in duplicate, under seal and attested by
the hands of their proper officers, a memorandum of association and if such
memorandum is approved by the Registrar, cause it to be filed in the office of
the Registrar.
(2) The memorandum of association shall state the name of the Federation,
the par value of the shares, the objects of the Federation, the place at which its
registered office will be situated, the names and addresses of the subscribers to
the memorandum of association and the names of the Credit Unions which they
respectively represent and shall be accompanied by a copy of the by-laws by
which the Federation is to be governed and such other documentary evidence
as the Registrar may require.
Voting.
Joint accounts.
Fiscal year.
Federation of
Credit Unions.
(3) If the Registrar approves of incorporation, he shall endorse upon both
copies of the memorandum of association a certificate of incorporation and
such endorsement shall be conclusive evidence of incorporation under this
Act.
(4) The Registrar shall cause a notice of the incorporation to be published
in two issues of the Gazette.
(5) From the date of the certificate of incorporation, the Credit Unions on
whose behalf application has been made for incorporation in the memoran-
dum of association and such other Credit Unions as from time to time become
members shall be a body corporate by the name contained in the memoran-
dum, and the provisions of this Act shall apply mutatis mutandis to the Fed-
eration.
Obligations of Officers and Members
62. Every person appointed to an office touching the receipt, manage-
ment or expenditure of money for the purposes of a Credit Union shall, before
entering upon the duties of his office, give such security as is deemed sufficient
by the directors, which security may be varied in amount or renewed from
time to time.
63. The by-laws of a Credit Union shall bind the Credit Union and the
members thereof to the same extent as if each member had subscribed his
name and affixed his seal thereto and there were in such by-laws a covenant
on the part of himself, his heirs, executors and administrators to conform to
such by-laws subject to the provisions of this Act.
64.-(1) All moneys payable by a member of a Credit Union shall be a debt
due from him to the Credit Union and shall be recoverable as such in any court
of competent jurisdiction.
(2) The Credit Union shall have a lien on the shares and deposits of a
Security.
By-laws binding.
Debts due by
members.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Credit Unions [CAP. 314
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27
member for any sum due from him to the Credit Union and for any loan en-
dorsed by him.
Returns
65.-(1) Every Credit Union shall, before the end of June every year, send to
the Registrar an audited statement of the receipt and expenditures, assets and
liabilities of the Credit Union, together with such other information relating to
the business of the Credit Union as the Registrar may require by notice in writ-
ing. The audit shall include an examination of any overdue debts.
(2) The audit under subsection (1) of this section shall be conducted by a
fit and proper person as auditor appointed by the Board of Directors subject to
the prior approval of the Registrar.
(3) Any person appointed to audit the accounts of the Credit Union shall
have power when necessary-
(a) to summon at the time of his audit any officer, agent, servant
or member of the Credit Union whom he has reason to believe
can give material information in regard to any transactions of
the Credit Union or the management of its affairs;
(b) to require the production of any book or document relating to
the affairs of or any cash or securities belonging to the Credit
Union, by the officer, agent, servant or member in possession
of such book, document, cash or securities.
(4) Any person who fails to comply with any summons or other require-
ments made pursuant to subsection (3) of this section commits an offence against
this Act.
(5) Every Credit Union shall supply gratuitously to every shareholder, on
his application, a copy of the last annual return made under this section.
Annual return.
33 of 1973.
66. Every Credit Union shall furnish the Registrar with such information as
he may from time to time require.
67. Every document and return required for the purposes of this Act shall
be made in such form as the Registrar may prescribe.
Inspection of Credit Unions
68. The affairs of every Credit Union shall be examined at least annually
by or under the direction of the Registrar, and the Credit Union shall produce
all books, documents and other papers required by the person conducting the
examination and such person may examine any officer of a Credit Union under
oath.
Offences and Penalties
69. It shall be an offence against this Act if any Credit Union-
(a) fails to give any notice, send any return or document, or do or
allow to be done any act or thing which the Credit Union is by
this Act required to give, send, do or allow to be done;
(b) wilfully neglects or refuses to do any act or to furnish any
information required for the purposes of this Act by the Reg-
istrar or any other official or person whose duties require him
to obtain the information, or does any act or thing forbidden
by this Act;
(c) makes a return or wilfully furnishes information in any respect
false or insufficient.
70. Every offence by a Credit Union shall be deemed to have been also
committed by every officer of the Credit Union who is bound by the by-laws
thereof to fulfil the duties whereof such an offence is a breach or, if there is no
Other returns.
Offences.
Form of return.
Duties of Regis-
trar.
Liability of
officers and
directors.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Credit Unions [CAP. 314
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29
such officer, then by each of the directors and members of the Credit and
Supervisory Committees, unless such officer, director or member of Commit-
tee is proved to have been ignorant of or to have attempted to prevent the
commission of such offence.
71.-(1) No person, firm, corporation or association doing business in Belize
shall use the words “Credit Union” or any abbreviation or derivative thereof, as
part of its corporate or business name.
(2) Any person, firm, corporation or association who or which contra-
venes the provisions of this section commits an offence against this Act.
72. Every person, firm, corporation, association or Credit Union who or
which commits an offence under this Act, shall on complaint of any Credit
Union or any member thereof or of the Registrar, be liable on summary convic-
tion to a fine not exceeding two hundred and fifty dollars.
Dissolution
73.-(1) A Credit Union may be dissolved by consent of three-fourths of its
members, shown by their signatures to an instrument of dissolution.
(2) The instrument of dissolution shall set forth in detail the liabilities and
assets of the Credit Union, the number of the members and the nature of their
respective interests in the Credit Union, the claims of creditors, if any, and the
provision to be made for their payment and the intended appropriation or divi-
sion of the funds or property of the Credit Union, unless the same is stated in
the instrument of dissolution to be left to the award of the Registrar.
(3) A statutory declaration shall be made by the President and secretary
that the provisions of this Act have been complied with and shall be sent to the
Registrar with the instrument of dissolution.
(4) The Registrar shall cause a notice of the dissolution to be advertised in
By consent of
members.
Penalty.
Use of words
“Credit Union”.
the Gazette and in some newspaper circulating in Belize.
74.-(1) Subject to the approval of the Minister, the Registrar may by order
dissolve a Credit Union if satisfied that-
(a) the incorporation of the Credit Union was obtained by fraud
or mistake; or
(b) the Credit Union exists for an illegal purpose; or
(c) the number of members has been reduced to less than ten; or
(d) the Credit Union is not carrying on business or is not in
operation; or
(e) the Credit Union has wilfully, after notice by the Registrar of
Credit Unions, violated any of the provisions of this Act.
(2) The Registrar shall give the Credit Union not less than two months’
notice of proposed dissolution, specifying the reason therefor and stating that,
unless cause is shown to the contrary within the said period, the name of the
Credit Union will be struck off the register and the Credit Union dissolved.
(3) At the expiration of the time mentioned in the notice, the Registrar
may, unless cause to the contrary is previously shown by the Credit Union,
strike the name of the Credit Union off the register, and in such case the Reg-
istrar shall publish notice thereof in the Gazette, whereupon the Credit Union
shall be dissolved.
75. If a Credit Union is dissolved under this Act, the Credit Union shall
nevertheless be considered as subsisting and be in all respects subject to the
provisions of this Act, so long and so far as any matter relating to the same
remains unsettled, to the intent and that the Credit Union may do all things
necessary to the winding-up of the concerns thereof and may sue and be sued
Dissolution by the
Registrar.
Settlements in
event of dissolu-
tion.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Credit Unions [CAP. 314
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31
under the provisions of this Act in respect of all such unsettled matters.
76.-(1) If a Credit Union is wound-up under the Companies Act, the liquida-
tors shall, when the affairs of the company have been fully wound-up and a
general meeting has been called for the purpose of having the liquidators’ ac-
counts laid before it, forward to the Registrar a duplicate of the return required
to be made to the Registrar.
(2) If the liquidators make default in transmitting the return mentioned in
subsection (1), they shall be severally liable on summary conviction to a fine of
twenty dollars for every day during which the default continues.
General
77. If the Registrar refuses to approve of any application for incorporation
or of any proposed by-laws or amendment of any standard by-laws, the provi-
sional secretary or the Credit Union, as the case may be, may appeal from such
refusal to an Appeal Board to be appointed by the Minister consisting of not
more than three persons who shall be members of some other registered Credit
Unions.
78.-(1) The Minister may from time to time by Order prescribe the fees pay-
able to the Registrar for services under this Act.
(2) All such Orders shall be subject to the approval of the National As-
sembly.
79. All fees received by the Registrar under or by virtue of this Act shall be
paid by him into the Treasury and form part of the Consolidated Revenue Fund.
Return.
CAP. 250.
Appeal where
registration
refused.
Fees payable to
Registrar.
Disposal of fees.
FIRST SCHEDULE
[Section 5 (2)]
CREDIT UNIONS ACT
Memorandum of Association
1. The undersigned are desirous of being incorporated under the
provisions of the Credit Unions Act.
2. The corporate name of the Credit Union is to be (insert name
proposed) Credit Union, Limited.
3. The Registered Office of the Credit Union is situated at
4. The par value of each share is $
5. The names and addresses of the undersigned and the number of
shares for which each has subscribed, are as follows:
Names Addresses No. of Shares Subscribed
6. will be provisional secretary of the
proposed Credit Union.
Dated at this day of , 20 .
Signatures of Witnesses Signatures of Applicants
Note: Not less than five of the above applicants must be of the full
age of eighteen years.
CAP. 314.
CAP. 314.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Credit Unions [CAP. 314
[ ]
33
SECOND SCHEDULE
[Section 7]
CREDIT UNIONS ACT
Certificate of Incorporation
THE Credit Union, Limited, having filed
a duly executed Memorandum of Association, is incorporated under the
Credit Unions Act.
DATED at this day of , 20 .
Registrar of Credit Unions.
CAP. 314.
CAP. 314.
