At the Laborie Credit Union each member is required to purchase 20 shares at $5.00 per share. These
shares are known as Equity Shares, which gives the member the right of ownership and the opportunity
to participate in the decision-making process of a Credit Union. However, the Co-Operative Societies act
sanctioned by the Eastern Caribbean Central Bank state that collectively members of Co-Operatives must
own at least 5% of the total assets of their Co-Operative. In the quest of achieving this target 25% of
member’s interest will be transferred towards equity shares until that target is met.
Equity also improves the capital structure of Credit Unions and in the long run, this form of investment
will provide members with attractive returns. Equity shares cannot be withdrawn. However, currently,
we are able to pay out 6% interest to our members annually. This is called dividend returns. However,
interest is declared at the Annual General Meeting.