COK General Manager Jacque-line Mighty (left) greets Councillor Sally Porteous at the official opening of the newly relocated COK Mandeville branch on Wednesday, Octo-ber 13. - Contributed

COK Cooperative Credit Union Limited will today bring to a special general meeting resolutions to finalise acquisition of Sodality Credit Union and the merger of the two entities.

The deal not only gives COK additional membership and a larger asset portfolio beyond its current $6 billion, but also allows the financial institution to broaden its membership base beyond the confines of the capital, where its common bond currently limits recruitment of new business.

The deal is also an opportunity for COK, which already has offices in urban centres outside of Kingston, to tidy up its operations, though the company maintains that the offices in Portmore, Mandeville and Montego Bay do not breach its current bond, notwithstanding what industry sources tell Wednesday Business has been long-standing disquiet about the Montego Bay operation.

COK, which also does business internationally, did not respond to requests for comment up to press time - its executives were said to be finalising details for today's meeting - but according to one of its annual reports, the bond allows it to serve residents of Kingston and St Andrew and their relatives "wherever they may live or work".

New members

But, Oneil Burke of the Department of Co-operatives and Friendly Societies in the Ministry of Industry Investment and Commerce, said that while COK can establish a presence outside of Kingston and St Andrew to serve members who once lived in the capital, it cannot solicit new members in those communities.

"The bond limits them to people living in Kingston and St Andrew and their relatives. They can serve people who once lived in these areas as well as those who live in other locales and work in Kingston and St Andrew, but otherwise they would not be able to solicit members," said Burke.

Jamaica Co-operative Credit Union League (JCCUL), umbrella body for the movement and de facto watchdog - that is, until the Bank of Jamaica takes over the role as regulator - agreed, saying the COK bond permitted it to serve high concentrations of its members even in areas outside of Kingston and St Andrew, said communications officer Claudette Christie.

"They are holding a meeting to clear up the issue," said Burke on Tuesday.

Today's meeting will put to a vote the acceptance of the transfer of engagements from Sodality, allowing COK access to its merger partners islandwide bond. Members will also vote on amending COK's bond to recognise persons of the Catholic faith and to increase the company's board from nine to 11 directors, adding two representatives of Sodality.

Sodality members have already agreed the deal in a vote on September 27, which will also see the merged entity assuming the new name COK Sodality Co-operative Credit Union Limited.

Sodality is the second credit union to be registered in Jamaica. Started in 1942, the 67-year-old organisation was founded by Father John Peter Sullivan, a Jesuit form Boston who also created a number of other credit unions and the JCCUL.

Membership has grown from 13 to just over 5,500. Later, the bond was opened to include anyone who believes in God.

The credit union currently has $92 million in assets and, according to informed sources, has struggled to make a profit for many years. The merger will provide members of Sodality with access to a wider range of products and services, including automated banking services offered by COK.

The smaller credit union, our source said, has been unable to introduce similar services without a serious injection of capital.

Merger

Its office on Constant Spring Road will remain open for at least a year into the merger, and at least six members of staff re-employed for the same duration.

The shares held by Sodality members will be equivalent to the shares in COK at the finalisation of the deal.

COK currently manages a portfolio of J$5.24 billion in savings within an asset pool $6.65 billion on behalf of just over 213,000 clients. It is currently estimated to be the largest among the 52 credit unions in Jamaica and 320 in the Caribbean.

COK's membership already stretches beyond Jamaica to North America, the United Kingdom, Cayman Islands, and other parts of the Caribbean through branches and a multi-service call centre, which manages both telephone and online inquiries.

Sodality's president is Trevor Black and general manager is Upton Fisher. COK is run by General Manager Jacqueline Mighty, who reports to a board led by president Joscelyn Jolly.

avia.collinder@gleanerjm.com

Upton Fisher, general manager of Sodality. - File