Meridian Class A Shares

Class A Shares are available to Meridian Members only – anyone living in Canada can easily become a Member. Purchasing Class A Shares does not entitle a Member to additional membership votes. 

The income earned on Class A Shares is taxed as interest income, 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.

For all Series issued prior to Series 17, Members may request to redeem or transfer their shares at anytime. Meridian will first attempt to facilitate a transfer by matching a Member looking to sell their share(s) (the seller) with a buyer from a waitlist. If no buyer can be found then the shares can be redeemed, subject to approval by Meridian Board of Directors.

Annual share redemptions for each Series are limited to 10% of each Series’ amount of shares outstanding at the beginning of the year. Redemption requests above that limit will be carried forward to the following fiscal year. All redemptions must be approved by the Meridian Board, subject to Applicable Law. 

Currently, Meridian holds 7 different series of Class A shares:

• 50th Anniversary
• Series 96
• Series 98
• Series 01
• Series 09
• Series 15
• Series 17

A Member may redeem a redeemable or non-redeemable GIC without penalty in order to make funds available for the purchase of Class A shares. Note: Market-linked GICs are the exception and cannot be redeemed.

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 payments are not prorated, no matter when you purchase Class A Shares. For example, if you purchase shares in May 2022 or November 2022, you’ll still be paid the full dividend amount in January 2023.

Class A Investment Shares are not eligible for deposit insurance by the Financial Services Regulatory Authority (FSRA).

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.

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

The waiting list is managed on a first come first served basis. Meridian will work through the waiting list and contact Members as shares become available.

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

The dividend floor rate ranges from 4.00% to 4.45% depending on the series. This rate is subject to change after the initial 5 years, as outlined within the Offering Statement, and each five years thereafter. The annual dividend rate can be higher than the dividend floor rate (with the exception of Series 96).

Dividends (taxed as interest income) are not guaranteed to be declared annually. Series 96 share are cumulative. All other series are non-cumulative.

No, as of 2022, Meridian has paid the dividend floor rate or higher for all Class A share offerings.

You can feel good about investing in Meridian Credit Union. We are 100% owned by our Members. Our profits are reinvested to bring exceptional products and services to our Members, and into the growth and development of our local communities. Learn more about Meridian

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.