Dividend conditions

There are three prerequisites to a caisse awarding a member dividend:

1. It must have surplus earnings from the previous fiscal year.

These surplus earnings can be compared to the net earnings of a capital stock company, but there is one small difference: the cooperative's goal is not to earn profits for a small number of shareholders.

2. It must have sufficient capital (equity).

The law requires the caisse to maintain a funding level that guarantees its financial soundness. Before paying member dividends, the caisse must first make sure that its own financial needs are met.

3. Members must decide that it will distribute a portion of the surplus earnings as member dividends.

Members attending the caisse's annual general meeting must decide that it will distribute a portion of the surplus earnings as member dividends and if required, they decide the terms and conditions of payment. They may also decide to earmark a portion of the dividends for community projects.

In accordance with provincial legislation, certain conditions regarding member dividends may differ in Ontario. Please contact your caisse or your Desjardins Credit Union branch for further information.