HOW COMMUNITY BANKING WORKS ….FROM A SHAREHOLDER’S VIEW
We are often asked how will the Community Bank work if I am to become a shareholder? Remember that as a shareholder, you own an equity share of the local community branch’s business. Your interests in this community bank are represented by a local Board of Directors, appointed by you, the shareholders.
When the business reaches profitability, you, as a shareholder can expect to receive a dividend. Up to 20% of branch profits can be paid out as dividends. The remaining 80% of branch profits will be allocated to community projects to support charities, sporting bodies or other local organisations.
Directors of the community branch will make the decisions about which projects in the community to support each year, with all profits to stay in the local area. Chairperson, Cheryl Newsom said “We now have over $750,000 in pledges, andgrowing steadily each week, so remember that if you haven’t yet pledged there is still time to do so. Any amount from $500 upwards would be accepted. Pledge forms are available at Canowindra Newsagency”.