Co-operative Credit Union Regulations, 2015 (L.I. 2225)
Regulation 20: Reserves and dividends
(1) A Co-operative Credit Union shall, at the end of each financial year, pay into the Central Finance Facility, an amount that is equivalent to five percent of the total assets of the Co-operative Credit Union.
(2) A Co-operative Credit Union shall establish and maintain a statutory reserve fund consisting of at least twenty-five percent of the annual profits of the Co-operative Credit Union.
(3) A Co-operative Credit Union may pay dividend out of the remainder of the annual profit, any retained earnings or reserves remaining from the previous year which are available for distribution.
(4) A Co-operative Credit Union shall not
(a) pay dividend in cash in excess of fifty percent of the annual profit of the Co-operative Credit Union without the prior approval of the Agency; or
(b) pay out dividend in cash or repay shares
(i) if the Co-operative Credit Union does not meet the minimum capital Financial Standard developed by a Co-operative Credit Unions Association appointed under regulation 8(1)(d) to which that Co-operative Credit Union is a member; or
(ii) if the payment may cause the Co-operative Credit Union not to meet the minimum capital requirement in the Financial Standard developed by a Co-operative Credit Unions Association.
(5) A Co-operative Credit Union that contravenes subregulation (1), (2) or (4) commits an offence and is liable to an administrative penalty of not more than five hundred penalty units.
Subject : Co-operative credit unions
Procedure to Follow
Not Avaiable
Responsible Institution
28th February Road, Finance Drv, Accra
- Email: info@mofep.gov.gh
- Website: www.mofep.gov.gh
- GPS: GA-144-2024
- Telephone: +233 302 747 197
Relevant Forms to Download
Not Available
Online System
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Fees/ charges
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