Eastern Credit Union back in court over November's elections

AN ex-director of the Eastern Credit Union Co-operative Society is now challenging the legality of last November’s virtual election of a new board and the High Court judge hearing the matter will determine at the end of the trial in May if the election results should be set aside.

Gerard Matthews has filed a claim alleging abuse of process and defamation by the credit union’s board after he was suspended as director although he was later put up for election on November 13, 2021, when the Commissioner of Cooperative Development intervened and threatened to go to court for an injunction to stop the process.

Matthews is seeking an injunction to nullify the results of the election of officers since he said he was not given time to successfully contest the election as he only learned on the day of the AGM, his name was included on the list of nominees.

He said this late inclusion “can only be seen as a farce” and has also complained that he was unlawfully removed as a director and suffered reputational harm as a result.

On Friday, Justice Frank Seepersad, who has been assigned the matter, deemed Matthews’s challenge fit for an early trial on May 6.

At the end of the trial, he will determine if the election results should be set aside.

Despite an objection by the credit union’s attorneys that the court had no jurisdiction in the matter and it was for the commissioner to determine the dispute, Seepersad agreed with the position of her attorney, Senior Counsel Reginald Armour, and ruled that the complaint did not concern matters over which the commissioner exercised authority.

Given that the election has already taken place, the judge agreed the matter raised important issues, particularly as the credit union controlled over $2 billion of members’ assets and was a significant player in the country’s financial landscape.

“Issues concerning conformity with the cooperative’s constitution and the propriety with which the affairs are conducted cannot be marginalised as membership confidence is critical for continued financial stability.”

In November, the credit union’s executive capitulated to the instructions of the commissioner to reverse a veto which led to three directors being suspended and deemed ineligible for the November 13 election.

At that time, the then attorneys for Commissioner Charmaine McMillan wrote to the credit union's executive to correct alleged illegal actions after the names of the directors were removed as nominees.

The credit union subsequently included the names of the directors who were put up for election.

McMillian’s attorneys had said she received several complaints from the directors concerning the process by which several potential nominees were rendered ineligible to stand or be nominated for election because of their alleged suspensions.

The commissioner also received complaints of an alleged deliberate flouting of the ECU’s bye-laws and policies; alleged abuse of process and authority and alleged usurping of powers as it related to the nomination process.

The commissioner has general powers of supervision of the affairs of societies under the Co-Operative Societies Act, and disputes are referred to that office for resolution.

It was contended the alleged removal of a director was in direct contravention of the ECU’s bye-laws, adding that McMillan was asked to investigate the complaints of alleged unethical conduct.

The commissioner had already started a preliminary investigation into the complaints.

Matthews is represented by attorney Delroy Burris while the credit union is represented by attorney Lemuel Murphy.