Focus on Credit Unions

Our interest in credit union boards was spurred by two postings for directors of credit unions on the WOB Boardroom in August - directed to us from WOBers from advertisements in local newspapers - and several events which revealed a number of women with an interest in, or whom were already a director of, a credit union board.

WOB subscribers can access a list of credit unions (name, website, contact details, number of directors) by clicking this link: http://www.womenonboards.org.au/pubs/pubs_subscribe/index.htm

Overview

Traditionally Credit Unions are mutuals but some are moving from this model. The Rock Building Society (Rockhampton) has been ASX listed for some time (and has five male board members). Others are part way through the process. However, the overwhelming majority are still mutuals and zealously maintain the benefits of this status.

Credit Unions are community or regionally based entities that serve a particular geographic area or focus on an employment group. They offer a range of financial services and their asset base varies from the largest, Newcastle Permanent Building Society, with $6b to those with assets of $100m or less.

The sector is regulated by APRA and ASIC.

Becoming a director

Directors of a credit union are elected from the membership (account holders) and the board acts in accordance with the Constitution. Some credit unions also have other conditions regarding eligibility to stand as a director.

Credit unions typically have their AGMs in October of each year when a number of directors retire by rotation. Nominations for director positions are circulated to the members who decide by postal ballot. Directors are usually paid a fee depending on size of the organisation.

A director of a credit union has provided the following advice about how to join a Credit Union Board. She thinks the key to success is:
  • Find some members to nominate you (usually two).
  • Study for the nominations committee interview – read the “Director’s Companion Booklet” which covers - What is a Credit Union; The Regulation of Mutual ADIs; and Corporate Governance Roles.
  • Write a member focused statement (200 words) as to why you should be elected as a director.

Statistics

WOB has assembled information on the 155 registered Credit Unions in Australia, including the composition of the boards of 111 (71%) of them. The remainder either do not have email contact or did not reply to our request for information.

The total number of directors in our sample is 855 of which 165 (19%) are women. Credit Union Boards vary in size from 5 to 11 with the average being 7.7 directors. The average number of female directors is 1.5.

We also looked at the distribution of female directors. Of the larger credit unions there are eight that have 40% or more female directors on a board with eight or more members. These are:

  1. Community Alliance Credit Union Limited (NSW): 10 male, 4 female directors
  2. Melbourne University Credit Union Limited (Vic): 7 male, 3 female directors
  3. Victorian Teachers Credit Union Ltd (Vic): 9 male, 4 female directors
  4. Calare Credit Union Ltd (NSW): 11 male, 5 female directors
  5. Hunter United Employees' Credit Union Ltd (NSW): 6 male, 3 female directors
  6. Maleny and District Community Credit Union Lld (Qld): 9 male, 5 female directors
  7. Wyong Council Credit Union Ltd (NSW): 8 male, 5 female directors
  8. Savings and Loans Credit Union SA Ltd (SA):8 male, 5 female directors

Where to target

The distribution of female board members could provide insightful into where to target your efforts.

There are 28 credit unions that have no female board members and 32 with only one. Two NSW based credit unions that have no female board members are the Newcastle Permanent Building Society and The Police Department Employees Credit Union. Then there are 13 with three women, two with four women and four with five female board members.

Content for this article has been sourced from publicly available information. Analysis has been done by WOB.