Chelsea membership FAQs

Your membership matters and we want to make sure that you really take advantage of membership to Chelsea Building Society.

This page explains what it means to be a member so you understand how you can get involved and have your say.

Please click a relevant question to be taken directly to the answer.

 
Who are Chelsea members?
There are two types of Chelsea member:
Shareholding members - those who hold a Chelsea savings account.
Borrowing members - those who have a Chelsea mortgage.

The following accounts do not carry membership rights:

  • insurance products
  • products offered by subsidiaries of Chelsea, such as Norwich Union and Legal and General

Which members have voting rights?
Any member who:

  • is the first named account holder in our records
  • is aged 18 or over on the date of the AGM and
  • had at least £100 in their savings account with Chelsea on 31 December and have continued to have a savings account with Chelsea at all times between 31 December and the voting date, or
  • owed Chelsea not less than £100 on a mortgage loan on 31 December and owe not less than £100 on a mortgage loan on the voting date

To vote at our AGM or in the election of directors, these criteria must be met on a specific date ie 31 December of the previous year.

What does membership mean?
Being a member of Chelsea Building Society means you are part of an organisation which is run for your benefit. Qualifying members are entitled to certain rights:

  • to vote in the election of directors and on resolutions
  • to attend our Annual General Meeting
  • to receive certain information
  • to support an election candidate or a member resolution.

Why must I have invested or borrowed £100 or more to be eligible to vote?
The Building Societies Act 1986 lets us set the minimum amount a member must have invested or borrowed to be eligible. We believe that £100 represents a sufficient financial commitment, entitling a member to have a say in how Chelsea is run.

When can I vote?
Voting members can use their vote once a year on the following issues:

  • the election of directors
  • resolutions to be voted on at the AGM

How are the directors elected?
Chelsea's directors are elected by you, our members, by postal ballot, online voting and in person at the AGM. If you are eligible to vote, voting papers and full details of how to vote in the election will be posted to you automatically.

If there are, say, four candidates for three vacancies, then you can vote for up to three out of the four candidates and the three candidates with the most votes are elected. However, if there are the same number of candidates in the election as there are vacancies on the board, you can vote 'for' or 'against' each candidate, or you can 'withhold' your vote. Only those who receive more votes 'for' than 'against' are elected. This is how the legislation states that the election should be held.

The board has resolved that non executive directors should be appointed to serve two full three year terms and that service beyond that should be subject to particularly rigorous review. In addition, non executive directors other than the chairman must retire after 9 years, other than in exceptional circumstances. Where service exceeds nine years, the board has resolved that directors should be subject to annual re-election by the members.

Can I join the board?
Any member who meets certain criteria may stand for election to the board. To do this, he or she must have been a member for not less than 2 years before the date of nomination, must obtain the support of at least 200 members who have each invested or borrowed at least £100 with Chelsea for at least 2 years. The candidate must deposit £250 with Chelsea which will be returned after the election in certain circumstances.

What are resolutions?
Each year members have the right to vote on the resolutions put forward to be voted on at the AGM. A resolution is a proposal that is put to the members for them to vote on and may be put forward by either the board or the members subject to certain conditions.

The board usually puts forward 3 resolutions each year:

  • to receive the Annual Report and Accounts
  • to approve the directors' remuneration report
  • to re-appoint the auditors

Sometimes the board may ask the members to vote on other matters, such as changes to Chelsea's memorandum and rules.

In addition, qualifying members may propose a resolution on a matter of interest to them which all eligible members will then have an opportunity to vote on.

How do I propose a resolution for the AGM?
Any qualifying member may ask for a particular resolution to be discussed and voted on at the AGM. To do this, the member must obtain the support of at least 500 members. These members must have each invested or borrowed at least £100 with Chelsea for a minimum of 2 years. The resolution to be discussed must meet certain requirements, which are referred to in our rules.

What happens at Chelsea's AGM?
All of Chelsea's members are entitled to attend our AGM. Held in March/April each year, it gives members the chance to meet the directors and ask them questions. Those members entitled to vote can also vote at the AGM on the resolutions, rather than appointing a representative to vote on their behalf.

Take me to information on Chelsea's 2007 AGM

What if I can't attend?
If you can't make it to the AGM, you can nominate a representative to attend and to speak and vote on resolutions on your behalf. Your representative is known technically as a 'proxy'.

If you cannot attend our AGM, there are other opportunities to speak to our Chief Executive and other senior members of staff. Chelsea is committed to our Member Viewpoint events which so far have taken place in Bristol Zoo and Norwich City Football ground.

What is the difference between voting at the AGM and voting in a postal/online ballot?
Voting on resolutions takes place at the AGM. However, the vast majority of members complete and return their voting forms by post or online. In doing this, you are appointing a representative to vote for you at the AGM. Anyone can be appointed as a representative; if you do not indicate the name of your representative on the form, then the Chairman of the meeting is automatically appointed. Your representative can be instructed how to vote on a particular resolution or he or she can be given discretion to decide how to vote.

What information can members receive?
A member is entitled to receive a range of information, including:

These items are available on request or in our branches. Members with voting rights will receive Notice of the AGM and the summary financial statement in the post automatically before the AGM with the voting forms.

What rights do I have if I hold a joint account?
If you hold any account jointly, only the first named account holder is entitled to vote (assuming the other criteria set out above are met). Other named holders are still members and are entitled to exercise the other rights mentioned above.

Can voting rights be transferred if a member dies?
If the first named member dies, then the second named member will become the first named member and will then be entitled to vote in their own right.

Membership cannot be transferred to either the beneficiary or trustees of the estate. This does not affect the rights of those who are entitled to the balance in the deceased member's account, who may also apply to become members in their own right.

Where can I get more information on my rights as a member?
For more information, ask your local branch for a copy of Chelsea's rules or telephone us on 0845 744 6622.

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