The Governance of Credit Unions in Ireland

Credit unions have an important role in Irish society. Their offices are a common feature in cities, towns, and villages throughout Ireland. A credit union is a not-for-profit financial co-operative, owned and controlled by its members. Each credit union is independent, with its own board of directors, which has overall responsibility for running the organisation. A unique feature is the voluntary ethos: the governance of credit unions is largely in the hands of members who give their time voluntarily. As part of the financial services sector, credit unions in the Republic of Ireland are subject to special legislation (principally the Credit Union Act 1997, as amended) and regulated by the Central Bank of Ireland.

Good governance is the cornerstone on which all successful organisations are built. It is important that the volunteers who hold governance roles in credit unions, on the board of directors and various committees, have the knowledge and confidence to comply with relevant legislation and regulation, while striving to achieve and apply best practice. This book is primarily written for these volunteers. It sets out the legal and regulatory requirements for each key role and committee, as well as best practice and relevant guidance. Each role and committee is described in terms of the part it plays in the overall governance of the credit union, and how it interacts with other roles. Each chapter is self-contained, providing information and suggestions regarding best practice to equip volunteers to perform their roles to a high standard.

This book is aimed primarily at the many volunteers on the boards of credit unions and/or other credit union committees. Staff in credit unions, particularly those in management roles, will also find it useful, as will members of credit unions with an interest in their governance. The emphasis throughout the book is on practical application, with extensive use of checklists and templates.

Outline of the book

• Chapter 1: The Board of Directors
• Chapter 2: The Board Oversight Committee
• Chapter 3: The Credit Committee
• Chapter 4: The Credit Control Committee
• Chapter 5: The Nomination Committee
• Chapter 6: The Membership Committee
• Chapter 7: The Risk Committee
• Chapter 8: The Audit Committee
• Chapter 9: The Remuneration Committee
• Chapter 10: The Manager
• Chapter 11: Internal Audit
• Chapter 12: The Risk Management Officer
• Chapter 13: The Compliance Officer
• Appendix A: Summary of Relevant Legislation
• Appendix B: Summary of Relevant Central Bank Guidance

The author

Gene Boyd is a Fellow of Chartered Accountants Ireland who has worked in a variety of senior management roles with international exposure, principally in the pharmaceutical industry. He has extensive internal audit and governance expertise and experience, and is chair of the audit committee of Kerry County Council and a member of the audit committee of the Department of Public Expenditure and Reform. Gene has contributed to the governance of various credit unions in his career, including the chairing of a board, a board oversight committee, and an audit committee. He is currently on the board of Member First Credit Union, one of the larger community-based credit unions in Ireland. Gene also provides risk management training and consultancy services and has developed and delivered training courses for credit union members, the Institute of Public Administration, and the National College of Ireland on governance-related topics.