i At a Special General Meeting on October 26, 1988, members will be asked to support a Special Resoluti see text adjacent) a izi ir Board of Direc- tors to proceed with the creation of a new organization together - with Edefweiss Credit Union. The legal term for the process of creating one new credit union from the present two is ymation.” In order to satisfy legal irments, the member. ships of both credit unions must decide, by a two-thirds majority of ‘amalgamate’ with the other. the J. Rigp!, current CEO of Edejweiss Credit Union, with *he head office remaining in its, -sent location on Lonsdale Avenue. North Shore Credit. Union's Chief Executive Officer, Ron E. Davies, plans to retire once the new ization is underway. THE P. URE TO GROW The pressure to achieve healthy growth in order to meet increas- ed statutory reserve requirements (5% of iabiliti 1991) is being felt by every it union in the province. But the options for growth are limited, particularly in the highly competitive Lower Mainland, and are for the most part both costly and risky. The consequences of ‘insuffi- cient growth, on the other hand, are even more , because failure to make ired statutory reserve account (SRA) transfers can result in a forced amalgama- tion with a larger institution and involve complete loss of identit and control, as well as branc! closures. TE WSR ear en op Jee wry SES eR a ee re Members of the Joint Board Committee, portunit rarer Seer . tor. standing: G. Brewer (Director, NSCU), D. Humphries (Director, NSCU), H.J. Reipl (CEQ, ECU), B. Sorenson (VP, NSCU), R. Staehli (Director, NSC NSCU), d. Bright (Chairman, ECU), R. Muelier (Director, ECU). Missin ». seated: R.E. Davies (CEO, 'SCU), H. Eppich (Chairman, from the picture area V. Miller (Director, ECU), and R. Werk (Director, ECU). THE OPPORTUNITY HERE AND NOW mak e opportunity to ea quantum leap in growth at the in- stitutional level without ifici ig individual identity and n service at the branch | op ity, indeed. oth North Shore and Edelweiss currently enjoy financial health, share the corn- mon objective of providin superior personal service, and of- fer similar products and services. Edelweiss Credit Union's four locations in Vancouver and Surrey complement the ten North Shore branch locations in North Van- couver, West Vancouver, Whistler, downtown Vancouver, and Burnaby. is a rare Edelweiss Credit Union current- ly has 9,400 members and an asset base of $105 million. By coinbining this with North Shore, the membership of the new organization would be about 45,000 with assets of approx- imately $385 million. BENEFITS TO MEMBERS | The primary benefits to members will be as a result of growth: a more financially secure credit union, more competitive in- terest rates and service charges, a wider variety of services including more staff specialists, more branch locations, a it union better equip to respond to technological change and better able to develop innovate products and services. A further benefit to members is that this opportunity to enjoy the advantages of growth will not carry with it the usual disadvan- tages, such as reduced personal service or loss of member in- da rwenee litte change. at the experience li ge at branch level. In addition, the pro- posed control system will provide an annual regional forum for North Shore members and ensure that their wishes and concems are represented at the Board level. THE BONUS OPPORTUNITY The event of creating a new crganization also creates a unique opportunity to bolster the capital structure of the new credit union substantially beyon: simp! sum of the two founding credit unions’ equity bases. 25 ~ Sunday, October 9, 1988 ~ North Shore News The innovative means of feving in equity is the distribution to members of ‘ap- praisal surplus” in the form of mus equity shares and in con- junction with the purchase of a new equity share issue. ‘Appraisal surplus” refers to the difference between the book value and cur- rent market value of assets such as buildings. Distribution of these funds as bonus shares must occur prior to the amal tion date, Bonus shares will be distributed on a one-for-two bases, eg, a member will receive 50 bonus shares free for every 100 shares of the new equity share issue he/she | shares have a oan ° new equi share issue and bonus s are tribution prcgram are met, the new credit union will be among the best capitalized cred it unions in rovince, if not the country. Further details about this ate equity share program are available y knocks .... ’ at every North Shore branch of- fice as part of a special Federation Information Kit for Members. YOUR ACCESS TO INFORMATION The Board of Directors is well aware of the magnitude of its pro- posal and would like to provide members with as much informa- tion as possible prior to the Special General Meeting on Oc- tober 26th. If you id like to learn more about the proposed federation, heres how: 1) Pick up a Federation Informa- tion Kit for Members at any North Shore Credit Union branch office, or if you can’t come in personally, phone your branch or head office and well send you one. 2) Attend one of the member in- formation meetings (consult the “Schedule of Events” below); representatives of the Board and management will be on hand to answer your questions. : 3) Talk to any staff member, we invite your questions and dialogue! Notice of Special Resolution North Shore Credit Union's Board of Directors is proposing and seeking membership approval for the following Special Resolution: RESOLVED, that for the pur- poses of an amalgamation pur- suant to the Credit Union Act of British Columbia, 1. the directors of North Shore Credit Union, or some of them, be and are hereby authorized to subscribe jointly with the directors of Edelweiss Credit Union, or some of them, to a Constitution and Rules of a proposed amalgamated credit union and to deliver these to the Superinten- dent of Credit Unions and Co- operatives together with any other information required in order to ef- fect an amalgamation of the Credit Union and Edelweiss Credit Union; and 2. the directors of North Shore’ Credit Union be and are hereby authorized to enter into an agree- ment, which has been approved first by the Superintendent, con- taining the terms and conditions of the amalgamation, and to do whatever may be requisite or desirable to carry out and com- plete the amalgamation of the Credit Union with Edelweiss Credit Union. North Shore Credit Union gives Notice and invites you to attend a ‘SPECIAL GENERAL MEETING | - ‘Wednesday, October 26, 1988 — 7:30 p.m. Centennial Theatre Centre 2309 Lonsdale North Vancouver, B.C. Registration wili commence at 7:00 p.m. The purpose of the meeting is to consider a special resolution authorizing the Board of Directors to proceed with Edelweiss Credit Union. the amalgamation of the Credit Union with