CRED 7A.2 1Shares

A credit union must not permit a member to have or claim any interest in the shares of the credit union exceeding the greater of £10,000 or1 1.5 per cent of the total shareholdings in the credit union.

Where CRED 7A.2.1 R or CRED 7A.2.6 R would be breached in relation to a member of a credit union because of a reduction in the total shareholdings in the credit union, those rules must, in relation to him, have effect, as respects any shares which he had, or interest which he claimed, immediately before the reduction, as if there were added at the end "at the time, or latest time, when he acquired shares, or an interest in the shares of the credit union."

For the purposes of CRED 7A.2.1 R and CRED 7A.2.2 R, the total shareholdings in a credit union at any time must be taken to be the total shareholdings as shown in the most recent annual return to have been sent to the FSA under SUP 16.7.62 (see CRED 14.10.7 G).

Shares in a credit union must not be held in the joint names of more than two members.

For the purpose only of the limit in CRED 7A.2.1 R, the interest of a member in a joint account must be treated as 50 per cent of the shareholding in that account.

A version 1 credit union must not:

1. (1)

   pay different dividends on different accounts; and

2. (2)

   pay dividends out of interim profits more than once a year.