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.

Members can request to transfer their shares at any time. Meridian will attempt to facilitate a transfer by matching a Member looking to sell their shares (the seller) with a buyer from our waiting list. If you transfer your shares to another Member, you’ll get back your original purchased amount.

No redemptions are permitted until the fifth anniversary of the issue date (except upon death of the shareholder). The maximum redemptions in any fiscal year cannot exceed 10% of the total shares issued and outstanding shares at the end of the preceding calendar year. This is subject to Board approval and Applicable Law.

Currently, Meridian holds 8 different series of Class A shares:

• 50th Anniversary
• Series 96
• Series 98
• Series 01
• Series 09
• Series 15
• Series 17
• Series 23

If you have a Meridian non-redeemable GIC (other than a market-linked GIC), you can redeem it without penalty to purchase Class A Shares.

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
• Series 23 - Maximum Shares Per Member 2,000,000

The dividend floor rate ranges from 4.00% to 6.50% 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.

Meridian is Ontario’s largest credit union, and second largest in Canada, with more than 75 years of banking history. We deliver a full range of financial products and services to more than 370,000 Members through a network of 89 branches and access to business banking services at 15 locations, a Member Contact Centre and online/mobile services. Meridian also has two operating subsidiaries: Meridian OneCap Credit Corp (“MOCC”), a leading national supplier of customized commercial equipment leasing solutions; and motusbank, a federally-regulated digital bank. Meridian Credit Union Limited has over $30 billion in assets under management (March 31, 2023).

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’ll need 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 of $1 will be returned once all Member holdings have been collapsed/dissolved.

Please note that Series 23 Shares are only available to residents and businesses in the province of Ontario.