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What are Class A Shares?


Meridian Class A Shares are a unique and exclusive investment opportunity for Meridian Members. When you invest in Class A Shares, you invest in Meridian directly by strengthening our capital base. In return, you earn a 4.00%* minimum rate of return, and an option for increased diversification in your investment portfolio.

Class A Shares are available for registered and non-registered accounts.


If you’re a Meridian Member interested in purchasing Class A Shares, simply let us know and we’ll add you to the waiting list.

When an existing shareholder is ready to redeem their shares, you’ll have the option to buy them.


Benefits of Class A Shares


Fixed redemption value

Unlike common shares, which are valued by the market and go up and down in price, Class A Shares have a fixed redemption value. This means you redeem them for the same price you paid for them.


No minimum purchase required**

You don’t need a lot of money to get started. You can invest as little as $1 CAD (1 share) when you’re offered the chance to purchase investment shares.


High rate of return

Class A Shares pay an annual dividend. The minimum rate of return, or “dividend rate” is 4.00%*.


While dividends are not guaranteed, historically, Meridian has always paid an annual dividend to shareholders. The dividend declared will be subject to available earnings and Meridian’s financial performance.


Why should you consider investing in Meridian?


Strong business growth

The chart shows the growth in Meridian’s assets under management, year over year in billions. Its shows that assets have increased each year from 2015 to 2019. In 2019, $23.9 billion, in 2018, $20.4 billion, in 2017, $18.1 billion, in 2016, $15.9 billion and in 2015, $12.8 billion.

Learn more about Meridian’s strong finish in 2019 or view our 2019 annual report.


Historical high rate of return

 

50th Anniversary

Series 96

Series 98

Series 01

Series 09

Series 15

Series 17

2015

4.75%

4.50%

4.75%

4.50%

3.90%

4.00%

-

2016

4.75%

4.50%

4.75%

4.50%

3.90%

4.00%

-

2017

4.00%

4.00%

4.00%

4.00%

3.90%

4.00%

4.25%

2018

4.00%

4.00%

4.00%

4.00%

3.90%

4.00%

4.25%

2019

4.00%

4.00%

4.00%

4.00%

3.90%

4.00%

4.25%


To join the waiting list, tell us how we can reach you



Get in touch

If you have any questions about Class A Shares please reach out to us. You can call your local branch to speak to an advisor, or call our contact centre and speak to a representative.

Frequently asked questions


  • How are Class A Shares different from other stocks or common shares?

    Class A Shares are available to Meridian Members only – anyone living in Canada can easily become a Member.

    The income earned on Class A Shares is taxed as interest, whereas, income typically earned on common shares is taxed as dividends. There is no secondary market (stock market) where Class A Shares can be traded. 

  • How can I redeem my shares?

    Shares purchased during an initial offering – Series 15 and Series 17

    Shares can be redeemed in the first 5 years of issuance as long as Meridian finds a buyer for those shares; Meridian cannot however, redeem shares from capital in the first 5 years (except upon death of the shareholder).

    All other Series

    Shares can be redeemed anytime. Meridian will first attempt to facilitate a transfer by matching a Member (the seller) with a buyer for your shares. If no buyer can be found then the shares will be simply redeemed, subject to approval by Meridian Board of Directors.

    Annual share redemptions across the Meridian Membership base are limited to 10% of the amount of shares outstanding at the beginning of the year. Redemption requests above that limit will be carried forward to the following year. All redemptions and/or transfers must be approved by the Meridian Board, subject to Applicable Law. Transfers of shares during this period are possible if Meridian is able to find a buyer.

  • What is the dividend rate?

    4.00% is the minimum target annual dividend rate depending on the series. The dividend rate is subject to change after the initial 5 years, as outlined within the Offering Statement, and each five years thereafter.

    Dividends (taxed as interest) are not guaranteed to be declared annually and are non-cumulative.

  • How are the dividends issued?

    If declared, dividends are paid to shareholders on the dividend payment date in the form of additional shares or cash. Payment is typically determined by the investor. However, the Meridian Board of Directors can mandate a specific type of payment (shares, cash or combination of both).

    Dividends are not prorated, no matter when you purchase Class A Shares. For example, if you purchase shares in May 2020 or November 2020, you’ll still be paid the full dividend amount in January 2021.

  • How do I purchase shares?

    If there is no current offering, you can request to be added to a Class A Share waiting list. When shares become available for sale, we’ll contact Members on waiting list about purchasing the available shares.

  • How long will I be on the waiting to buy Class A Shares?

    There is no guaranteed timeline for Members on the waiting list.

    The waiting list is managed on a first come first served basis. We’ll work our way through the waiting list and contact our Members as shares become available.

  • What are the share purchase minimums/maximums?

    When you purchase from the waiting list, there is no minimum amount required to purchase. The maximums are as follows:

    • 50th Anniversary - Maximum Shares Per Member 100,000

    • Series 96 - Maximum Shares Per Member 100,000

    • Series 98 - Maximum Shares Per Member 150,000

    • Series 01 - Maximum Shares Per Member 150,000

    • Series 09 - Maximum Shares Per Member 250,000

    • Series 15 - Maximum Shares Per Member 500,000

    • Series 17 - Maximum Shares Per Member 2,000,000

  • Who can become a Member?

    Anyone who lives or works in any Canadian province or territory can become a Meridian Member. There is no fee to join Meridian, but you’re required to hold a Membership Share. A Membership share is only $1 and entitles you access to all the services of the credit union, and full rights as an owner/shareholder. You can discontinue Membership at any time, at which point the Membership Share will be redeemed.

Legal


*4.00% is the minimum target annual dividend depending on the series. Dividends are not guaranteed.

**When you purchase from the waiting list, there is no minimum amount required to purchase.

You must be a Member to purchase Class A Shares.

Joining the waiting list does not obligate a Member to purchase Investment Shares.

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