Qudos Bank is a customer-owned bank with a mutual governance structure, which means that when customers open an account with us they become shareholders and are issued with 5 x $2 redeemable preference shares (Member shares).
Member shares allow customers to vote on company resolutions and in Director Elections. We’re not listed on the ASX so people can’t buy, sell or transfer shares.
Membership shares are issued at par value, do not increase or decrease in value over time and no dividends are paid.
Prior to 2006, customers would pay upfront for the shares when they joined and are reimbursed the $10 when they close their accounts (as their Member shares are redeemed). Members who joined after 2006 are issued unpaid Member shares, which means they do not pay upfront, but Qudos can call on the $10 for their shares, if needed. Qudos has no plans to make a call for payment of the shares.