The conditions for a member of the management board of a credit union

The management board of a credit union directs the business of the credit union, represents the credit union and performs other activities in accordance with the Credit Unions Act, the Articles of Association and other bylaws of a credit union. The management board of a credit union comprises one or more members, jointly representing the credit union. Only a person who has obtained approval from the Croatian National Bank for a management board member may be appointed to the credit union's management board provided he/she: 

1. has a secondary school degree as a minimum;
2. has adequate professional qualifications, competence and work experience needed to manage the operations of a credit union (minimum three year work experience in management positions in a credit union or in directing the business of an undertaking or a financial institution);
3. has not been convicted by a judgement with final force and effect of a crime against the values protected by international law or of one of the following crimes:

• against the payment system and the security of its operations;
• relating to the authenticity of documents;
• relating to breaches of official duties;
• relating to disclosure of a state secret;
• relating to concealing the illicit origin of money; 
• relating to money laundering, or
• relating to terrorist financing;

4. has never been a member of the management board or supervisory board of a credit union, or a member of the management board of an undertaking in bankruptcy proceedings, or a member of a credit union whose authorisation has been revoked;
5. has never been the subject of safety measures prohibiting the pursuit of the occupation that is included, in full or in part, in the scope of activity of the undertaking while this prohibition is in force; and
6. is not a member of the management board or supervisory board or a procurator of another credit union or undertaking.

Application for approval for a member of the management board of a credit union

The application for approval for a member of the management board of a credit union is submitted by the supervisory board of the credit union at least three months before expiry of the term of office of the management board member for a maximum term of office of four years. The application is to be submitted on the application form for approval for a member of the management board of a credit union, together with the following documents and information:

1. a completed and signed Questionnaire to the Candidate for a member of the management board of a credit union;
2. proof of the candidate's professional qualification;
3. proof of the candidate's work experience;
4. candidate's curriculum vitae;
5. work programme with projections of financial statements (balance sheet, profit and loss account) for the term of office of the appointment.

Deciding on the Application for approval for a member of the management board of a credit union

The Croatian National Bank may require from the candidate and the credit union to submit other documentation necessary for taking a decision on the application for approval for a member of the management board of a credit union and may require from the candidate to present his/her work programme in person.

The decision on the application for approval for a member of the management board of a credit union is issued by the Governor within 60 days from receipt of a valid application. Approval for a member of the management board is granted for the duration of the proposed term of office but may also be granted for a shorter term.

The Croatian National Bank will refuse an application for approval of a member of the management board of a credit union in the following cases:

1. if it establishes that the person in question does not meet the requirements for a member of the management board;
2. if it is evident from the information at its disposal that the activities or operations carried out by the candidate or the actions that used to be performed by the candidate are likely to be detrimental to the operations of the credit union;
3. if it assesses on the basis of the candidate's work programme that the candidate will not manage the operations of the credit union in accordance with regulations; and
4. if it establishes that the candidate has produced false and inaccurate information in his/her application for approval.

The approval for a member of the management board of a credit union expires:

1. if the person is not appointed and does not assume the office of a member of the management board within six months (in the case of establishment of a credit union) within six months or three months from the date of receipt of approval for a member of the management board of a credit union;
2. if the function of a member of the management board terminates, as of the date of termination of the function in the credit union to which the approval relates; and
3. on the date of expiry of the employment contract with the credit union to which the approval relates.

Withdrawal of approval for a member of the management board of a credit union

The Croatian National Bank will withdraw an approval for a member of the management board of a credit union in the following cases:

1. if the authorisation has been obtained on the basis of false and inaccurate data;
2. if the member of the management board materially breaches the obligations referred to in Articles 22 and 23 of the Credit Unions Act and;
3. if the conditions for a management board member referred to in the Companies Act have ceased to exist (if the management board member has been convicted by a judgement with final force and effect of crimes or is subject to the safety measure prohibiting the pursuit of the occupation).