Dear Valued MediCoop Member
MEDICOOP CFI TRANSFORMING TO A MUTUAL BANK
MediCoop was established 8 years ago as a Cooperative Financial Institution (Reg. No. 2015/014609/24), duly recognised and licensed by the Prudential Authority under the South African Reserve Bank as a deposit-taking institution (Act No. 40 of 2007) and registered with the National Credit Regulator (NCRCP8712), Financial Intelligence Centre (FIC ID No. 38406), and governed by a Board of Directors in terms of its Constitution.
Much has been achieved in establishing MediCoop successfully - soliciting members, operational maturity, systems and IT, product development for financing solutions and loans to medical practitioners and healthcare businesses, banking services, investment and deposits, alliance partnerships, demographical transformation, and support to young and new professional entrants.
Despite these successes, it remains very difficult and challenging to operate and transact within the licensing limitations of a co-operative financial institution, especially in the healthcare industry with its unique investment and financing requirements.
MediCoop has outgrown the Co-operative concept. Following intensive research and strategy sessions to deliberate on our options, we have concluded that MediCoop, as a Mutual Bank, would have more growth potential and improved adequacy to provide our services and value proposition to our members and the industry.
In general, MediCoop would be transforming from a social co-operative financial institution to an entity aligned to commercial principles. Some of the specific improvements and benefits would include the following:
CAPITAL STRUCTURE
The Memorandum of Incorporation (“MOI”) of the intended new Mutual Bank shall, subject to the approval of the Prudential Authority, allow for permanent capital in the form of:
a) approved classes of ordinary shares with predetermined voting rights per class of share, and
b) approved classes of preference shares with or without predetermined voting rights per class.
All current shares held by members in MediCoop CFI shall be converted on a one to one basis to ordinary shares of a specified class in the new mutual bank.
The principal is that the converted structure into a new Mutual Bank will essentially remain member owned
BUSINESS ACTIVITIES
The platform will continue to offer the complete portfolio of banking services. The major difference is that we will not be limited to a common bond, but continue to be dedicated to the medical and health industry.
BOARD AND COMMITTEES
We will be able to implement the principles of retention, continuity and succession. More than 51% of the Board must be non-executives and can be remunerated. Directors must serve on all Committees.
CORPORATE HOLDINGS
Subsidiaries and branches with their own directors are permitted. The institution may hold fixed property, securities, IT investments and financial instruments and utilise a Guardian Bank in support.
Given the no limitation on investment and share class options, the conversion broadens the opportunities to solicit investment, including access to international funding.
This new prospect, to transform MediCoop CFI to a Mutual Bank, is very exciting and offers members the opportunity to become founding members / shareholders in a new MediCo Mutual Bank in South Africa.
I lieu of a Special Members Meeting to be scheduled in the first semester of this year, please click here to download and read the attached “NOTICE TO MEMBERS, CREDITORS AND STAKEHOLDERS". We undertake to keep our members fully informed of the progress towards transforming to a Mutual Bank
Please feel free to contact us at info@medi.coop should you have any questions or require more clarification.
Yours sincerely,
Theuns Botha
Managing Director
SA Primary Medical Financial Co-operative Limited Registration No. 2015/014609/24 | Registered Credit Provider NCRCP 8712 | Financial Intelligence Centre ID 38406
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