Q. What are Permanent Shares?

A: Permanent Shares represent a member’s ownership of, or Member’s equity in the Association.  This amount cannot be withdrawn while the person remains a member but could be transferred from one member to another through the Association.

Q. Why is it necessary for the Association to implement Permanent Shares?

A: This is mandatory in order to comply with International Financial Reporting (Accounting) Standards that require Equity to be treated in a certain way.  This is also another Product for raising capital.

Since our present shares are not considered Capital.  Permanent Shares represent members’ Equity in the Association.

Q.  How are Permanent Shares different from Ordinary Shares?

A:  The money in ordinary shares can be withdrawn; they can only be transferred when the member decides to give up membership.

Q.  How does a member benefit from having Permanent Shares?

A:  Owning Permanent Shares represent you Part Ownership or Equity in the Association and guarantees your Membership in the Association.

Q.  How does the Association benefit?

A:  Permanent Shares increase the Capital of the Association and allows it to undertake expansion and enhancement of products and services.

Q.  Why do I need Permanent Shares?

A:  In order to be a member of the Association and participate in all the activities of the Association.

Q.  What Activities are you referring to?

A:  Activities such as:

Q.  When do I buy these Permanent Shares?

A:  Any time.  It depends on your financial situation, your cash flow and how much you want to keep in a long term investment in the Association.  Please remember minimum share purchase is EC$250.00.

Q.  Will I get dividends on my Permanent Shares?

A:  Dividends will be paid on permanent shares.  Based on growth and profitability, the amount will be approved by the Board of Directors.

Q.  If I withdraw or I do not take up Permanent Shares, am I still a member?

A:  The existing Shares account will continue in its present form.  Holders of these Shares would continue to enjoy membership privileges until December 31st, 2010.  If you do not have a minimum of $250.00 in Permanent Shares by this date, membership privileges would cease.

Q.  Can I use my Permanent Shares as collateral?

A:  Permanent shares are not intended to be used as collateral.  Building & Loan Members have the option of using their Share Savings and Special Deposit to provide collateral for their loans.  Other types of loans and collateral will be introduced shortly.

Q.  How and when can I get back my Permanent Shares?

A:  When you decide to withdraw from the Association you can do one of two things:

  1. Sell you Permanent Shares to another member or to a person who is eligible to be a member.  You must inform the Association in writing that you have sold your Permanent Shares to “Tom Jones”.  This document must be witnessed by two (2) persons, a Justice of the Peace or a member of the Notary Public.


  1. You can request in writing that the Association sell your Permanent Shares.




WHEREAS the St.Vincent Building and Loan Association (the Association) is a members based organization incorporated under the Building Societies Act, 1941 and which operation governed by Rules made under the Act.

AND WHEREAS the Association from its inception maintained a General Ledger Account that summarizes the balances of all members who owned Share Capital in the Association.


AND WHEREAS this Share Capital account formed part of the equity of the Association.


AND WHEREAS the Rules of the Association allow any member the opportunity to withdraw funds from his/her/its Share Capital account, provided adequate notice is given to the Association by the Member.


AND WHEREAS International Financing Reporting Standards (IFRS-39) have been revised and states that members shares (as we have them) are not Equity, since these are subject to withdrawal by members and hence have the qualities of liabilities, and must therefore be presented as such in the Financial Statements.


AND WHEREAS the Association is interested in establishing a Permanent Share Capital account in its books to satisfy the requirements of IFRS-39 and International Accounting Standards (IAS-32).


BE IT RESOLVED and it is hereby resolved that this Special General Meeting of the St.Vincent Building and Loan Association approves the establishment of the appropriate accounts in the books of the Association to satisfy the requirements of IFRS-39; and

BE IT FURTHER RESOLVED and it is hereby resolved that this said Special General Meeting approved a minimum of 25 share at $10.00 each share as Permanent Share Capital to be acquired by each member on or before 31st December, 2010.

AND BE IT FURTHER RESOLVED and it is hereby resolved that this said Special General Meeting authorizes the Board of Directors, in the event that a member has not acquired the minimum Permanent Share Capital by the given date, that is, 31st December 2010, that an amount equal to 25 shares at $10.00 per share be transferred from Current Share Capital or interest therefrom of the member to the Permanent Share Capital of the member.

Further a copy of the Resolution must be sent to the Director General of Finance and Planning.

Dated December, 2nd 2009

Kenneth Browne