SFXCU Takes Registrar of Credit Unions to Court

Saint Francis Xavier Credit Union remains under the administration of an experienced banker appointed by the Registrar of Credit Unions.  That individual is responsible for oversight of the day-to-day operations of the lending institution in Corozal Town.  But the appointment is not without controversy and a lawsuit is presently before the High Court in respect of the registrar’s decision to hire an administrator.  The duly elected board of directors, as well as the general manager of the credit union, are represented by Senior Counsel Dean Barrow.

Dean Barrow

Dean Barrow, SC, Attorney-at-law

“Our clients, who are the board of directors and the general manager of St. Francis Xavier Credit Union, were greatly aggrieved by the action of the registrar who is the governor of the Central Bank.  Our clients accept that there were problems, but felt that the registrar had already taken action to deal with those problems.  The registrar had, for some time before he appointed the administrator, embedded examiners from the Central Bank at the main office of SFXCU to supervise the process and to implement the corrective measures that the registrar had specified.  So, in the opinion of our clients, there was no need for the registrar to appoint an administrator.  Their grievance is especially strong for two reasons: number one, the appointment of the administrator did away with the board.  When the administration is ended, whenever that will be, then the board can reassume office.  Fortunately, since the appointment will last at least a year, fortunately the board is elected not on an annual basis, but I think it’s triennial, because if it had been on annual basis, by the time administration would have ended, the board would have had no chance to reassume office.”