### Credit Unions Ordinance 《儲蓄互助社條例》

10. Powers
For the purpose of carrying out its objects, a credit union may—
(a) deposit money in any bank in Hong Kong approved by the Registrar; (Amended 35 of 1995 s. 15)
(b) invest in any stock, debenture stock, funds or securities in which a trustee may invest by virtue of the Trustee Ordinance (Cap. 29);
(c) become a member of any other credit union;
(d) subject to section 43, borrow money;
(e) insure its loans, funds and property against loss;
(f) subject to this Ordinance, under the hands of its president and treasurer, or vice-president and treasurer, draw, make, accept, endorse, execute and issue promissory notes, bills of exchange, bills of lading, warrants and other negotiable or transferable instruments, and any prescribed instruments within the meaning of section 137B of the Banking Ordinance (Cap. 155); (Amended 94 of 1993 s. 38)
(g) hold, purchase, take on lease, sell, exchange, lease or otherwise dispose of any land;
(h) do all such other acts and things as are incidental or conducive to or consequential upon the attainment of the objects mentioned in section 3.

11. Capital divided into shares
The capital of a credit union shall be unlimited in amount and shall be divided into shares of a value of $5 each.
(Amended E.R. 7 of 2020)

12. Allotment and subscription for shares
(1) Subject to this Ordinance, shares in a credit union may be allotted, subscribed and paid for in the manner provided in the by-laws.
(2) Shares in a credit union shall be allotted only to the members thereof.
(3) No share shall be allotted to a member until he has paid for it in cash in full without any premium or discount.
(4) A credit union shall not issue to a member a certificate denoting ownership of a share.

### Credit Unions Ordinance 《儲蓄互助社條例》

13. Disposal of shares
(1) Subject to this Ordinance, shares in a credit union may be transferred or withdrawn by the holder thereof in the manner provided in the by-laws.
(2) No transfer or withdrawal of shares in a credit union shall be valid unless approved by the board, which approval shall be withheld if the transfer or withdrawal would reduce the total number of members of the credit union to less than 15. (Amended E.R. 7 of 2020)
(3) A transfer of shares in a credit union may take place only between the members thereof and no charge in respect of any transfer shall be imposed by the credit union.
(4) A member of a credit union may not transfer or withdraw any shares if the transfer or withdrawal would make the total value of his shares less than his total liability to the credit union, whether as borrower, pledgor, guarantor or otherwise.

14. Restriction on disposal of shares by officers, etc.
(1) No officer or member of a credit union, whilst entrusted with or participating in the management of the affairs of the credit union, shall pledge, transfer, withdraw or otherwise dispose of his shares except in accordance with this Ordinance and the by-laws.
(2) If a credit union is wound up under Part IX, any disposition of shares by way of pledge, transfer, withdrawal or otherwise made by an officer or member thereof within the 4 months preceding the commencement of the winding-up shall be invalid and the officer or member shall remain liable to the creditors of the credit union to the extent of any shares so disposed of. (Amended E.R. 7 of 2020)

15. Membership limited to persons with common occupation, etc.
The membership of a credit union shall be limited to persons having a common bond of occupation, employment, association, or residence within a defined neighbourhood, community, or rural or urban area:
Provided that a member of a credit union who ceases to have the common bond to which membership of the credit union is limited may retain his membership thereof but may not obtain the grant of any loan therefrom exceeding the value of his shares in the credit union.

16. Admission to and conditions of membership
(1) A person shall not be admitted to membership of a credit union unless—
(a) his application for membership has been approved by the board;
(b) he has paid such entrance fee as may be provided in the by-laws; and (Amended 35 of 1995 s. 2)
(c) he has subscribed to at least one share and has paid an amount thereon not less than such initial instalment as may be provided in the by-laws.
(2) Subject to subsection (1), the conditions of membership of a credit union shall be in accordance with the by-laws.

### Credit Unions Ordinance 《儲蓄互助社條例》

17. Minors
(1) A minor may be admitted to membership of a credit union but shall not be qualified to vote at the annual or special meetings thereof until he has attained the age of 16 years. (Amended E.R. 7 of 2020)
(2) The minority of any person duly admitted as a member of any credit union shall not debar that person from executing any document necessary to be executed or given under this Ordinance, and shall not be a ground for invalidating or avoiding any contract entered into by any such person with the credit union; and any such contract entered into by any such person with the credit union, whether as principal or as surety, shall be enforceable at law by or against such person notwithstanding his minority.

18. Expulsion of member
(1) A member of the credit union who contravenes any provision of this Ordinance or acts in any way detrimental to the interests of the credit union may be expelled therefrom upon a resolution passed by two-thirds of the members present and qualified to vote, at an annual meeting, or at a special meeting called for the purpose.
(2) The grounds on which his expulsion is being considered shall be communicated to the member in writing by the board not less than 7 days before the resolution for his expulsion is to be moved and he shall be given the opportunity to answer, either in writing before the meeting or orally thereat. (Amended E.R. 7 of 2020)
(3) The by-laws of a credit union may make provision in respect of the expulsion of members therefrom.

19. Cessation of membership
Subject to this Ordinance, a member of a credit union who transfers or withdraws all his shares therein or who is expelled therefrom shall, from the date of such transfer, withdrawal or expulsion, cease to be a member of the credit union.

20. Payment on cessation of membership
(1) Subject to this section, any money owed in respect of shares by a credit union to a past member thereof shall, after deduction of any money owed by him to the credit union, be paid to him.
(2) A credit union may, if it thinks fit, postpone the payment of any money owed to a past member for not more than 90 days after his membership ends. (Amended E.R. 7 of 2020)
(3) No payment shall be made by a credit union to a past member unless all his liabilities to the credit union, whether as borrower, pledgor, guarantor or otherwise, have been fully discharged or otherwise fully provided for by a person other than the credit union.

21. Liability on cessation of membership
A past member of a credit union shall have no further rights therein but shall not thereby be released from any remaining liability to the credit union.