New Quebec MSB case

On February 6 2019, the Superior Court of Quebec granted an injuction to reinstate a MSB into its membership rights with its credit union, following a de-risking measure that excluded the MSB on the basis of « intolerable risk ». Excerpts from a blog where accusations were made with respect to a co-owner of the MSB, a criminal conviction in Africa for the other co-owner, and a consultant’s report emphasizing deficiencies in the MSBs compliance program did not help the credit union resist the MSB’s claim for an order reinstating its membership rights on an interlocutory basis, that is, until trial in this matter, wherein the MSB will ask for a permament re-instatement.

This case raises a special provision in credit union legislation in Quebec, that provides that a member can be excluded where its activities « are contrary to the interests of the credit union.

Link to the case (in French) : https://www.canlii.org/fr/qc/qccs/doc/2019/2019qccs362/2019qccs362.html?searchUrlHash=AAAAAQAZImF2b2NhdCIgRVQgImJsYW5jaGltZW50IgAAAAAB&resultIndex=5

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