HONG KONG - Also discussed:
* “Demutualizations,” or charter conversions as better known in the U.S. Australia has seen a considerable number of charter conversions as the process there often differs from that in the U.S. and is more equitable to members. Members of converted Australian credit unions are paid a premium on their deposits out of the CU’s capital by the acquiring institution, and additional funds if the shares rise in value as a result.
Dorety disclosed that based on his research he and his board would stand to make substantial sums if $6.2-billion Suncoast Schools demutualized, although that has never been considered by the CU. Additional shares would then be sold to members. “It’s incomprehensible to think that a U.S. credit union board of directors could give away their credit union assets for personal gain, then offer to sell back to the members something they already own,” said a surprised Doughty, who called the U.S. scenario “bloody outrageous.”
* Becoming environmentally friendly. Australia’s CUs have excelled at “greening“ their operations. At MECU, Doughty said, staff works hard to reduce carbon emissions, plants 700 trees per year and even mulches food scraps from the credit union cafeteria. Such efforts are not only the right thing to do, but also comprise a good business strategy according to Doughty.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
