Abstract

In its judgment of 8 March 2018, II CSK 330/17, the Supre Court raised an issue of importance for cooperative banks and their members concerning the relation of a bank’s obligation to return a share and the lack of authorisation of the FSA to reduce the members’ fund of a cooperative bank. The Supreme Court found that in the situation of the lack of such authorisation a cooperative bank’s obligation becomes legally impossible. The author of the gloss notes that such a situation satisfies the requirement to consider the members’ fund to be Tier I core capital and at the same time modifies the nature of a member’s claim to get their share back as compared with such claims of members of other types of cooperatives.