Cooperative principles

(1) For the purposes of this Act, a credit union conforms to the cooperative principles if– (a) no member other than a body corporate has more than one vote; (b) no member or delegate appointed by a credit union is entitled to vote by proxy; (c) its business is carried on primarily for the benefit of its members; (d) its membership is voluntary and available, without any artificial restriction or any unlawful basis of discrimination, to any person who can use its services and is willing to accept the responsibilities of membership; (e) its mandatory share capital is permanent and all share issued may be paid an economic rate of return, where a credit union realizes a (f) any surplus or savings out of its operation is– (i) used to develop its business; (ii) used to provide or improve common services to members; (iii) distributed among in proportion to their patronage of the (iv) used for the payment of dividends on Credit Unions Act 13 (v) used to educate its members, officers or employees and the general public about the principles and techniques of economic and democratic co- (vi) contributed to bona fide charitable, benevolent or non-profit organizations; (g) cooperation with other credit unions and with cooperatives is pursued; (h) there is continuous education of members of the credit union. (2) Notwithstanding the provisions of sub-section (1) a credit union shall do everything within its means to promote safety and soundness in its operations and the fullest development of the community in which it operates.