Credit union shall mean a credit institution satisfying the economic and social needs of its members and holding a licence to engage and engaged in the receipt of deposits and other repayable funds from the non-professional participants of the market specified by this Law and lending thereof, also authorised to engage in the provision of other financial services stipulated by this Law to the persons specified by this Law and assuming related risks and responsibility. The legal form taken by a credit union as a legal person may only be a cooperative society.
A credit union may be established only for an indefinite period, only upon obtaining an authorisation of the supervisory institution to establish the credit union. The articles of association of a credit union being established must be submitted to the manager of the Register of Legal Entities and the credit union must be established within nine months from signing of the articles of association; in the event of a failure to do so within the specified time limit, the articles of association of the credit union shall become invalid and the share contributions and initial membership fees paid earlier shall be reimbursed. A credit union shall be established by accumulating the funds covering the expenses incurred in connection with the establishment thereof from initial membership fees and accumulating the share capital – from share contributions.
The founders of a credit union may be solely natural persons. A credit union may be established by not less than five founders. Founders shall enter into an agreement of the establishment of a credit union.
The founders of a credit union shall draft the articles of association of the credit union and shall submit them for approval to the statutory meeting. The founders must, prior to the statutory meeting, enter the persons who have made share contributions in the register of members. Prior to the statutory meeting, the minimum share capital must be accumulated and the shares of at least 50 persons must be paid up. Prior to the statutory meeting, any of the founders shall have the right to enter into transactions on behalf of and for the benefit of a credit union being established, unless the memorandum of association thereof stipulates otherwise. Where the statutory meeting does not approve these transactions, the obligations based on these transactions shall be jointly and severally guaranteed by the founders who have entered into them.
Žymos: Formation of a Credit Union