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Annual General Meeting Minutes of the 45 th
MINUTES OF THE 45 TH ANNUAL GENERAL MEETING
OF THE
MON REPOS EASTERN CO-OPERATIVE CREDIT UNION (1968) LTD.
HELD AT THE MICOUD SECONDARY SCHOOL ON SUNDAY 30 TH JUNE, 2019
THEME:
At approximately 3:44 p.m. the Chairperson, Mr. Henry Annelle, called the meeting to order. The meeting began with the prayer of St. Francis of Assisi followed by the National Anthem.
WELCOME REMARKS
The president extended a cordial welcome to all members of the Mon Repos Eastern Co-Operative Credit Union (MRECCU) on behalf of the Board of Directors, Officers, Management and Staff. He stated that 2018 was a successful year, hence the theme “Building on Members’ Confidence to Bring Economic Prosperity, Safety and Strength”. He urged all members to listen to the reports and participate in the discussion.
MINUTES
Having ascertained a quorum, the meeting moved into the business session. The secretary, Cassienne Samuel, read the minutes of the 44 th Annual General Meeting. Three errors were noted and corrected – consistency in the use of Ms. and Mrs. for the same individual, 2017 instead of 2018 on page 9 and the word “presented” instead of the word “done” referring to the Credit Committee report on page 12. Pastor Antoine Charles then moved a motion to confirm the minutes, seconded by Cathy Noel Robinson.
Matters Arising from the Minutes
One member inquired about the status of the ATM. Mr. Daniel Jn. Baptiste provided an update. He explained that the venture was too costly for MRECCU to undertake on its own, therefore it had to
be a collective effort under the League umbrella. One machine was already installed at Laborie Credit Union in Vieux Fort but not yet operational. The other three will be installed at Mon Repos, Choiseul and Castries. There were several other questions on the matter. One member suggested calling a special meeting to give specific information on the ATM and to address their queries. Another cautionedto be mindful of security issues and ensure that measures are put in place to avert them. Mr. Jn. Baptiste assured members that this has been of paramount importance, and MRECCU has hired an IT consultant who has been involved in the planning stages and will continue to be involved in implementation. Members’ input was well received.
One member wanted to know how members who pay their loans get rewarded. The treasurer
informed that 3% is paid as patronage on interest paid on loans, 5% dividend is paid on equity shares and 2.5% is paid twice yearly on regular shares (savings) making it 5% for the year. This 5% is much higher than the recommendation from ECCB of 2%.
PRESENTATION AND ADOPTION OF REPORTS
BOARD OF DIRECTORS REPORT
President Mr. Henry Annelle, delivered this report. He expressed pride in the achievement of the Credit Union for the year in review, from an asset base of $74,777,606 at the end of 2017 to
$89,151,919 at the end of 2018 and said he was looking forward to the first 100,000,000 million
soon.
He spoke of MRECCU’s investment in young people through the secondary school scholarships and T20 cricket tournaments, as well as contributions made to the sports programmes of the various schools. The hope is that these investments will assist in producing well-rounded productive young citizens.
He lamented the poor growth of the loan portfolio and spoke of the ongoing efforts to improve the situation.
He also lamented the continued poor, cramped space at the Micoud Branch. He informed members of the efforts made so far to find better accommodation, none of which have been successful.
The president told members that in an effort to manage the risks involved in credit granting, the Credit Union would implement Credit Life Insurance by August 2019. This will be mandatory for all categories of loans except those covered by cash. He explained the rationale for this move.
Some of the activities undertaken by the Education Committee were highlighted.
Mr. Annelle commended all committee members, management and staff for their commitment, hard work and good working relationship. He also thanked the general membership for the confidence they have placed in the leadership of their Credit Union. These, he said, have enabled the Credit Union to thrive.
Supportive details are on pages 18 – 22 of the 2019 Annual Report.
Questions and Comments
One member wanted to know the maximum age for Credit Life Insurance. The response was seventy years which is considered life expectancy.
Another requested the rationale for additional insurance. The explanation was that CUNA covers liabilities up to $90,000. For larger loans, members are required to get life insurance, which is an added responsibility. The Credit Union is seeking to make it easier for members to manage additional insurance through collective responsibility. In addition, for those who have personal life insurance, itcan go to their beneficiary while allowing Credit Life insurance to take care of the loan after death.
Another member wanted to know what would be done with the lot near the highway if we are successful in finding an alternative site. The response was that someone has already expressed an interest to buy should that option become available.
One member applauded the Credit Life Insurance. Another applauded the $14.3 million growth in assets but wanted to know what the target was. This figure was not available at the meeting but members were told a budget is prepared every year and targets are set. They were also informed that the growth fell below target mainly because of the movement of loans in the market. A suggestion was made for the targets to be included in the annual report.
The Board Report was adopted on a motion moved by Esther Butcher and seconded by Kester Dornelly.
TREASURER’S REPORT
Presented by the treasurer, Nigiel Jn. Baptiste. She highlighted increases in all areas of operation. However, these increases were significantly lower than the previous years due to economic difficulties faced by members and stiff competition in the financial market. The loans portfolio showed the smallest growth and the treasurer indicated that the Credit Union would have to adopt new strategies in order to remain competitive.
The report went on to underscore the performance of the Credit Union in comparison to industry standards using accounting ratios. These ratios indicated that the Credit Union performs well within industry standards.
Supportive details are on pages 23 to 28 of the 2019 Annual Report.
Questions and Comments
One member questioned the large allocation for bad debts. The Manager explained that the
regulations require provisions be made for all loans that are not paid as scheduled. He also pointed out that our Credit Union is well within the delinquency standard of 5% according to the instrument used to measure such. The Manager went on to explain requirements by IFRS 9 pertaining to provisions for loans, which would have be implemented.
There was a suggestion to reduce interest rates on loans to make them more attractive and forego the patronage refund. Members were informed that interest rates on some categories of loans have been reduced.
Another member wanted to know the purpose of the equity shares. Explanation was given.
The treasurer was commended for the clarity of her report and the suggestion made to include graphs showing a little more detail of the delinquency.
There was another suggestion to find creative ways to attract new members and to bring back those who have left.
The report was then adopted by the majority of members on a motion moved by Cecilia James and seconded by Francois Serieux.
AUDITOR’S REPORT
Anthony Walcott of Walcott and Associates delivered the report for the year 2018. He explained that the financial statements have to be prepared in accordance with International Financial Reporting Standards. IFRS 9, which became effective on January 01, 2018, introduced new standards for making provisions for losses. The Credit Union could not comply with that new requirement, hence the reason for the 2018 financial statement to be classified as a Qualified Statement.
He continued to explain that in all other respects the financial statements for 2018 presented fairly the financial position and performance of the Credit Union in accordance with International Financial Reporting Standards.
Supportive details are on page 49 of the 2019 Annual Report. There were no questions nor comments. Consequently, the report was adopted by the majority of members on a motion moved by Donette Charlery and seconded by Marguerite Malzaire.
CREDIT COMMITTEE REPORT
Cletus Dorleon, chairperson ofthe committee, presented this report. It gave details of the number of loans the committee assessed for the year, the decisions taken by the committee, purposes for the loans and the dollar value for each category. Tables and graphs provided greater clarity.
Mr. Dorleon went on to express gratitude to the staff of MRECCU and the loans officers in particular, for their support. He also urged members to service their loans on time and save regularly, thereby helping to strengthen the Credit Union and improving living standards for all. Supportive details are on pages 29 to 38 of the 2019 Annual Report.
Since there were no questions nor comments, the report was adopted by the majority of members on a motion moved by Stephanie Fanis and seconded by Magdelene Serieux.
SUPERVISORY COMMITTEE REPORT
Elizabeth Norbert, secretary of the committee delivered this report. She outlined some of the common errors seen on transaction slips, some of the issues raised with the Board and recommendations given. She also reported that the committee did not observe anything unacceptable in operations during their informal visits to the branches.
She commended the staff for their hard work and in particular, those who serve at the Micoud branch taking into consideration the constraints there.
Supportive details are on pages 39 to 42 of the 2019 Annual Report.
Questions and Comments
One member found the report very comprehensive and commended the committee. The report was adopted by the majority of members on a motion moved by Sylvesta Serieux and seconded by Anselma Brice.
RESOLUTIONS
Four resolutions were presented to the general body. See pages 43 to 46 of the 2019 Annual Report. 1. Resolution to provide honorarium to officers was proposed by Angela Raymond and seconded by Marguerite Malzaire: For – 147; Against - 1.
2. Resolution to declare dividends and patronage refund was proposed by Pastor Antoine Charles and seconded by Charlene Aubert: For – 145; Against – 0; Abstained - 0.
3. Resolution to appoint an auditor was proposed by Laurentia Canii and seconded by Rufina Charlery: For – 88; Against – 0; Abstained – 2.
4. Resolution to acquire real property was proposed by Joan Antoine and seconded by Stephanie Fanis. This resolution sought to get permission to purchase one parcel of land for
each of the three branches with Micoud as first priority, followed by Mon Repos and then Vieux Fort. Members questioned the three in one and asked that this be done as three separate resolutions. Although an explanation was given, the majority of members voted for that resolution to be deferred and redone.
ELECTIONS
Elisha Norbert, chairperson of the Nominations Committee, presented the nominees for the various committees.
Board of Directors: There were three vacant positions. Henry Annelle had served his full term. Elisha Norbert resigned for study and Nigiel Jn. Baptiste had completed her first term.
The committee nominated Nigiel Jn. Baptiste, Jennifer Phillip and Chriselda Stanislas. Jennifer Phillip was not present at the time. The floor nominated Kester Dornelly and Rufina Charlery. The votes went in favour of Nigiel Jn. Baptiste, Rufina Charlery and Kester Dornelly in that order. Supervisory Committee: There were three vacant positions. Elizabeth Norbert and Veronica Fevrier-Vitalis had served their full term. Venantius Descartes had completed his first term.
The committee nominated Venantius Descartes, Maura George and Rohn Peter. There were no nominations from the floor therefore the three were accepted.
Credit Committee: There were two vacant positions. Trudy Augustin had completed her first term and Donnette Charlery vacated the post.
The committee nominated Trudy Augustin and Melinda Actille. The latter was not present so the floor nominated Angela Raymond. The two were duly accepted.
VOTE OF THANKS
The meeting concluded with the vote of thanks by Daniel Jn. Baptiste.
ADJOURNMENT
Janetta Alexander called for the adjournment at 7:47 pm. This was seconded by Stephanie Fanis.
_____________________ Cassienne Samuel (Mrs.) SECRETARY
Moved by: ___________________________________
Seconded by: ___________________________________
