Credit Union Mutuality
Community CPS recognises that member relationships, their accumulated goodwill, the organisation's capabilities and its financial value were developed both through the support of our members as well as the expertise of its directors, managers and employees.
These parties, past and present, pass their legacy on so we can continue to create value for present and future members. Community CPS adheres to the concept of mutuality. We are committed to the sustainable value and benefits that mutuality can bring to members.
In November 1997, Australian credit unions endorsed a set of principles that express the essential characteristics of Australian credit union mutuality.
These principles are:
• Members are sovereign
• Members control eligibility for membership
• Membership is acquired by subscribing a primary member share
• One member/one vote
• Only members can acquire ownership rights in a credit union
• Only members can be borrowing or depositing customers
• Only members may be directors
Principles of Good Governance
Community CPS recognises the principles and approaches to effective corporate governance promoted through the 'Principles of Good Corporate Governance' published by the Australian Stock Exchange Corporate Governance Council. These Principles require that an effective Board of directors and senior management should:
• Lay solid foundations for management and oversight
• Structure the Board to add value
• Promote ethical and responsible decision making
• Safeguard integrity in financial reporting
• Make timely and balanced disclosure
• Respect the rights of shareholders
• Recognise and manage risk
• Encourage enhanced performance
• Remunerate fairly and responsibly
• Recognise the legitimate interests of stakeholders
The Community CPS Board takes care to ensure that its governance practices and the activities of senior management are in keeping with these principles. To keep Community CPS members informed on the conduct of the Directors, the Board provides a Corporate Governance Statement each year in its Annual Report to members.
Community CPS Constitution
The Community CPS Constitution has the legal effect of a contract between:
- The Credit Union and each member;
- The Credit Union and each director and company secretary; and
- A member and each other member,
under which each person agrees to observe and perform the rules that apply to that person.
It is the primary document guiding all policy-making decisions of the Board and management.
Fit and Proper Policy
In accordance with the Australian Prudential Regulation Authority (APRA) Prudential Standard APS 520 Fit and Proper, Community CPS has implemented a written Fit and Proper Policy which has been approved by the Community CPS Board of Directors.
One of the primary aims of the policy is to ensure that the persons responsible for the management and oversight of Community CPS have the appropriate skills, experience, and knowledge, and act with honesty and integrity.
