Steelsands Credit Union and First Credit Union look to unite
Steelsands Credit Union Incorporated (Steelsands) proposes to transfer its engagements (Transfer of Engagements) to First Credit Union Incorporated (First) in accordance with section 135(3) of the Friendly Societies and Credit Unions Act 1982 (FSCU Act).
Under the Transfer of Engagements, it is proposed that First will undertake to fulfil all engagements of Steelsands, by succeeding to all of the assets, property, rights, powers, and privileges of Steelsands, together with all liabilities and obligations of Steelsands. The Transfer of Engagements is similar to a merger between Steelsands and First.
As a small financial entity, Steelsands has been finding it difficult to compete due to relatively higher costs to meet and deliver services and, in recent years, the increased cost of compliance. This trend is expected to continue in the future. The Transfer of Engagements has been proposed to a larger, more resilient credit union to secure the future of Steelsands for its members, and will create increased opportunities to deliver improved products and services in the future. First have a similar vision to continue to develop a strong, competitive and sustainable sector that delivers on its purpose of ‘people helping people’ across New Zealand.
It is proposed that members of Steelsands will vote on the Transfer of Engagements at Steelsands' Annual General Meeting called for 18 October 2022. If approved, the Transfer of Engagements will be subject to the further approval of the board of First and will remain subject to other conditions. It does not need to be approved by members of First.
If the Transfer of Engagements is approved by members of Steelsands by way of special resolution and the Transfer of Engagements becomes unconditional, the special resolution will be filed with the Registrar of Friendly Societies and Credit Unions (Registrar) pursuant to sections 135C(1) and 82(3) of the FSCU Act. Under section 82(4) of the FSCU Act, a period of six weeks is then allowed for objections to be made in respect of the Transfer of Engagements.
If a person considers that they may be adversely affected by the Transfer of Engagements to a substantial extent or, where they are entitled to claim a benefit from Steelsands or First and are dissatisfied with the provision made for that claim, they may object to the Transfer of Engagements pursuant to section 85 of the FSCU Act.
Objections may be made in writing to the Registrar at Private Bag 92061, Victoria Street West, Auckland 1142 within the six-week objection period or by email to email@example.com. Any objection should be clearly stated and describe the remedy sought.
It is anticipated that the Transfer of Engagements will take effect on or around 1 December 2022.
The most recent Product Disclosure Statements and audited financial statements for Steelsands and First may be obtained online by accessing the Disclose register www.disclose-register.companiesoffice.govt.nz (using the “Search for an Offer” function).
Further information may be obtained by contacting firstname.lastname@example.org.