VANCOUVER, B.C. October 2, 2020 – Central 1 Credit Union (“Central 1”) is pleased to announce that its members have passed a special resolution approving amendments to its Constitution and Rules (“Rules”).
The amendments were proposed in connection with the plan to legally segregate the mandatory liquidity pool (the “MLP Segregation Plan”) as previously announced by Central 1. The amendments remove the requirement in Central 1’s Rules for Class A members to maintain on deposit with Central 1 at least the amount that the member is required by a regulatory body to maintain in liquid form, excluding that amount maintained in cash, in satisfaction of applicable legislation. The amendments also remove all provisions in the Rules relating to Class F shares. Under Central 1’s current Rules, Class F shares were issued to Class A members that have assets on deposit in the mandatory liquidity pool. The amendments are subject to consent of the British Columbia Financial Services Authority and will come into effect at a time determined by the board of directors of Central 1.
In order to be approved, the special resolution was required to receive the approval of (i) not less than 66 2/3 per cent of the votes cast by the holders of Class A shares of Central 1, on the basis of one vote per Class A share held and (ii) not less than 50 per cent plus one of the Class A members voting on the special resolution.
This table sets out the results of the vote on the resolution:
About Central 1
Central 1 is a preferred partner for financial, digital banking and payment products and services – fueling the success of businesses across Canada. With $21.3 billion in assets, we leverage our scale, strength and expertise to power progress for more than 250 credit unions and other financial institutions, enhancing the financial well-being of more than 5 million customers from coast to coast. For more information, visit www.central1.com.
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