Motion to Annual General Meeting 2023

The following motion is submitted to the AGM from the Board of Directors:

Amend Rule 26 – Appeal against expulsion

Current Rule 26:

26. A Member shall have 14 days from the receipt of a notice of expulsion to request an appeal against their expulsion.  The Board of Directors shall, upon a request received in Writing from the Member on whom the notice of expulsion has been served, convene a special general meeting of the Members to consider the matter of their expulsion.  The meeting shall be held not later than 60 days after the date on which the expulsion notice has been served on them.  The Member shall have the right to be represented and heard at such special general meeting.  The special general meeting shall have the power, by a majority decision of Members present, to confirm the Member’s expulsion or to direct that they shall remain a Member of the Credit Union.  The result of the appeal shall be final. 

Proposed Rule 26:

26. A Member shall have 14 days from the receipt of a notice of expulsion to request an appeal against their expulsion. The Board of Directors shall, upon a request received in Writing from the Member on whom the notice of expulsion has been served, convene a meeting of the Audit and Risk (Supervisory) Committee to consider the matter of their expulsion. The meeting shall be held not later than 60 days after the date on which the expulsion notice has been served on them. The Member shall have the right to be represented and heard at such meeting. The meeting shall have the power, by a majority decision, to confirm the Member’s expulsion or to direct that they shall remain a Member of the Credit Union. The Chairperson of the meeting shall have a casting vote in the event of an equality of votes. The result of the appeal shall be final.

Why is the Board proposing this rule change?

This is not a process which the Board has had the need to use in recent years, and it hopes not to have to use it in the future. Nevertheless, it believes that the Credit Union Rules should be modernised to reflect best practice, in line with other credit unions in the UK.

The current rules of many other co-operatives, including credit unions, place the responsibility for deciding upon the expulsion of a Member within the Board. This removes the need for a Special General Meeting and the resulting burden on Members. The Board believes convening a meeting of the Audit and Risk (Supervisory) Committee to consider the matter of their expulsion if requested in writing from the Member on whom the notice of expulsion has been served, along with the right for the Member in question to be represented at Meetings at which decisions on their Membership are being made, are sufficient safeguards to ensure fair treatment of Members.

The reasons why a member may be suspended, and subsequently expelled, from the Credit Union are covered by Rule 24 in the Penny Post Rules. Click here to view.