82 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Barbados Public Workers’ Co-operative Credit Union Limited Notes to the Separate Financial Statements March 31, 2023 (expressed in Barbados dollars) 54 21 Related party disclosures …continued Other transactions …continued Deed of Sale and Administration agreement …continued Allied Co-operators Inc. (ACI) was established to offer co-operative shared services to credit unions and their members. Phase 1 of its development will provide assurance services to affiliated credit unions of the Barbados Co-operative Credit Union League Ltd. These services will include corporate governance, operational risk management, compliance and internal audit. In subsequent phases of its expansion ACI will provide similar services to micro, small and medium sized enterprises (MSMEs) and not for profit organizations locally. Additionally, it will leverage the brand of Capita Financial Services Inc. to further expand into the OECS and other Caribbean regions. Finally, ACI’s suite of services will be broadened to include finance and financial planning, information technology, strategic planning, marketing, customer experience and research. The capitalisation of ACI as a wholly owned subsidiary of the Credit Union invoked section 34(A) of the Cooperative Societies Act, CAP. 378A, which states that any such investments shall be limited to ten percent of the Credit Union’s statutory reserves. In accordance with the Co-operative Societies Act, CAP. 378A, on May 19, 2020 the Credit Union sought approval from the Financial Services Commission to capitalize its fully owned subsidiary Allied Co-operators Inc. in the amount of $1,000,000. The Credit Union completed the investment of $1,000,000 for 10,000 shares in ACI on July 5, 2021 for sole ownership in the subsidiary.
RkJQdWJsaXNoZXIy MTA2MDM=