Desjardins Group’s 20^th Congress

The 20^th Desjardins Group Congress of Elected Officers, held on November 27, 28 and 29, 2009, was a definite success. More than 1,700 participants, including some 1,200 delegates representing caisse members, came together in Québec City under the theme Cooperate to shape our destiny to discuss the orientations that Desjardins should take to remain a leader in a changing world.

Delegates discussed three major themes to propel Desjardins into the future: Desjardins-wide focus and action, Desjardins Group ambitions for development and Desjardins Group performance and financial strength.

The opening of the 20th Congress of Desjardins Group’s history was a highly moving event. Participants were brought back to the pivotal moments of this history. It was also an occasion for honouring its builders.

A builder from the very start, 99-year-old Rosario Tremblay has taken part in all of Desjardins Group's congresses, and he didn't make an exception for this one. He proudly shared his long experience as a cooperator, bearing testimony to Desjardins Group's ongoing development and the undeniable leadership of its elected officers.

Appropriately for Desjardins, the opening night of the 20^th Congress had plenty of modern elements as well.

The prime minister of Canada, Mr. Stephen Harper, as well as Mr. Jean Charest, premier of Québec, appeared virtually to greet caisse officers and underscore the importance of Desjardins in the economic development of Québec and of Canada.

Several personalities from the world of cooperation also attended the event. Present at the Congress were representatives from the Group Crédit mutuel de France, the Conseil québécois de la coopération et de la mutualité, the Conseil canadien de la coopération et de la mutualité, the Fédération des caisses populaires acadiennes and Credit Union Central of Canada.

A researcher at the University of Hawaii and the Mingan Island Research Station, Jean Lemire has acquired considerable knowledge of whales and participated in international research projects.

Jean Lemire, biologist and film maker, made his dreams reality. He told about his last expedition on Sedna IV as leader of the Antarctica mission. He highlighted the importance of cooperation, expressing his conviction that a team is stronger than a single person and that solidarity can help navigate through strong winds and tides.

Like a tree that has been growing for almost 110 years, Desjardins Group has weathered many seasons. It has adapted to the world around it and continues growing, solidly rooted and bearing hope. Ms. Monique F. Leroux, Chair of the Board, President and CEO of Desjardins Group drew on this image of a tree to encourage participants to continue developing this financial institution built by boldness, vision and perseverance.

"We are here to continue making Desjardins Group grow, like those who came before us," said Ms. Leroux. "Our duty is to shape the destiny of our institution and think of future generations. We need to give them a Desjardins Group that is even stronger than it is now."

The inspiring Julie Payette is an extraordinary example of someone who has met many challenges. A multilingual electric and computer engineer, she has received several honours and distinctions. Ms. Payette stands apart in an innovative field, and her career is anything but ordinary.

Following a very warm welcome, Ms. Payette, astronaut with the Canadian Space Agency, made an interesting comparison. Noting the openness and innovative spirit of Desjardins elected officers, Ms. Payette believes that today's leaders, like pilots, need to demonstrate vision and adaptability to move organizations forward in a world of never-ending change.

Delegates symbolically placed their dreams on the tree of hope to take Desjardins Group even higher and even further

"Cooperation means believing in others and giving them your trust."
Michel Carrier

"A solid financial institution that can adapt to the new diversity of Québec society that grows with its members by adapting to their needs through innovation."
Marie-Ève Bone

"Leave the next generation a cooperative and environmental heritage and our desire to build and innovate."
Normand De Montigny

Members representing various clienteles were able to live the experience of a Desjardins congress. As part of pilot groups, they expressed their expectations of their financial institution, thus contributing to the reflection process on the development of the caisses and of Desjardins.

Organizational strategy specialist with McKinsey and Co., Mr. Bruce Simpson shared some of his extensive experience with businesses all over the world.

"Together we can shape the destiny of Desjardins Group, strong in its cooperative values and more than ever moving towards a more responsible, equitable and sustainable world. A Desjardins that thinks and acts for the long term."

Monique F. Leroux, Chair of the Board, President and Chief Executive Officer of Desjardins Group

The theme song, written for this 20th Congress, was performed by the virtuoso Alexandre da Costa and about 200 volunteer singers from the Québec City area, who were joined by Desjardins Group employees and elected officers.

Créer notre avenir
Le tien, le mien si tu désires
Créer notre avenir
Celui de ceux qui vont venir

Créer le Desjardins
Que nous voulons, qui est le tien
Porter ce Desjardins
Encore plus haut, encore plus loin

About Desjardins
Desjardins is the largest cooperative financial group in Canada and the eighth largest in the world. The first caisse was founded in 1900 by Alphonse Desjardins. Over the years, the caisses have created more than 20 specialized subsidiaries, operating today across Canada.

We serve 5.8 million members and clients—individuals and businesses. In Québec, Desjardins Group is the leading financial institution, the largest private-sector employer and the largest property owner. Desjardins Financial Security is the number one life and health insurer in the province, and Desjardins General Insurance is the top insurance company for individuals.

In Ontario, our market is growing steadily, particularly thanks to the efforts invested by the caisses in that province and their active presence in the community, and to our insurance subsidiaries, which have made significant inroads into the Canadian market.

In 2009, for the first time in its history, Desjardins Group has been rated as one of the world's 50 safest financial institutions.

What Is a Desjardins Congress of Elected Officers?
A Desjardins Congress takes place every four to five years. It brings together members delegated by their caisses to discuss major themes that will guide the organization’s growth in the years to come.

A Desjardins Congress is an ideal opportunity for the caisses to focus their thoughts on their members’ needs and on ways in which they can contribute to the economic and social development of their community.

Who Takes Part?
Congress participants are essentially elected officers from the caisses.

Each caisse delegates a specific number of participants based on the total number of members it serves. As such, a caisse serving:

• up to 5,000 members will send one delegate
• between 5,001 and 10,000 members will send two delegates
• between 10,001 and 15,000 members will send three delegates
• between 15,001 and 20,000 members will send four delegates
• between 20,001 and 250,000 members will send five delegates
• more than 25,000 members will send six delegates to the Congress.

Moreover, each caisse is allowed to send one additional elected officer who will participate in the Congress discussions but cannot vote on the proposed orientations.

What Themes are Discussed?
The themes covered during a congress are inspired by the challenges Desjardins Group is facing at the time and the socio-economic context of that period.

Thus, the congresses in the 1950s focused primarily on the rapid growth of the caisse network and the need to teach members about savings and to inform them about the concept of credit.

The 1960s and 1970s generated debates on the importance of adapting to the needs of the members, modernizing the caisses and expanding the contribution of Desjardins Group to include the economic and social development of communities.

In the 1980s, 1990s and the first part of the current decade, the congresses were the scene of discussions on Desjardins Group’s desire to reaffirm its cooperative identity and redefine the role and tasks of the caisse officers. There were also talks on restructuring the caisses’ support organizations.

The 2009 Congress will concentrate primarily on the paths Desjardins must take in order to remain a leader in a changing world.

A Brief History of Past Congresses
1952 to 1961
The first congresses organized by Desjardins Group generated three major orientations:

• Promoting financial education among members—encouraging family budget planning, promoting savings and the School Caisse program, and raising awareness about the cooperative movement.
• Adapting caisse credit policy to better meet members’ needs for small loans.
• Making caisse security and administrative rigour a priority—setting up reserves, standardizing accounting procedures and drawing up a code of ethics.

1963 to 1978
During the 1960s and 1970s, the caisse congresses had grown into an important forum on the future of Québec and on the economic and social role of Desjardins Group, and led particularly to the following orientations:

• Adapting financial services to meet the needs of members—relaxing caisse credit policy, and teaching members about and protecting them from abusive credit practices.
• Continuing to educate members in economic and financial matters—encouraging savings through payroll deduction, advising members on family budget planning, creating consumer education committees and teaching children at all levels of education about saving.
• Increasing the caisses’ contributions to economic development—obtaining amendments to the Savings and Credit Unions Act to broaden the caisses’ scope of operations in the field of commercial and industrial investments, and supporting industrial development.

1986 to 2005
From 1986 to 2005, six congresses were organized, each attracting between 2,800 and 3,700 participants. For the most part, they dealt with more specific issues than in the past and made it possible to update cooperative practices and adapt the structure both of the caisses and of Desjardins Group as a whole.

The following orientations were established:

• Reaffirming and updating the cooperative identity—paying increasing attention to management and financial security mechanisms, and hiring, both in the caisses and in the Desjardins Group entities supporting the caisses.
• Redefining the role and functions of the officers—converting the caisse board of supervision to a board of audit and ethics and focusing its role on ethical, professional conduct and cooperative issues; providing compensation for certain officers.
• Restructuring the Desjardins Group entities supporting the caisses—regrouping the caisse federations and the Confédération into one single federation.
• Promoting network profitability and productivity in order to remain a strong competitor in the financial sector.

How Caisses Work
A Desjardins caisse is a financial services cooperative that belongs to its members. Members can express their opinions and expectations regarding their caisse, especially by attending their caisse General Meeting.

The Caisse General Meeting
The caisse General Meeting is usually called once a year, after the end of the financial year. The General Meeting follows the “one member, one vote” principle, meaning that every vote holds the same value and that no individual can take control of the caisse.

During the General Meeting, members can directly contribute to the decisions of their caisse; for example, a member might suggest setting up a fund to contribute to community projects; another might take the floor to inform other members about a local issue they think the caisse may be able to help with.

Becoming an Elected Officer of the Caisse
Becoming an elected officer of a caisse is an interesting way to get involved in the social and economic development of the local community while learning about the world of finance and cooperatives. Caisse officers are not appointed by the caisse general manager or by Desjardins Group but by the other members of their caisse gathered at the General Meeting.

To become an elected officer, a member must submit their nomination for one of the available positions on the Board of Directors or Board of Supervision of their caisse. Generally, the nomination period closes four days before the General Meeting.

Young Intern Officers (18-30 years old)
The Young Intern Officer program allows young people between the ages of 18 and 30 to perform a one-year internship on the Board of Directors or Board of Supervision of a caisse. Working alongside the elected officers gives them the opportunity to learn about the role of administrators and to build a diverse professional network.

The Democratic Structure of the Caisse
The Board of Directors
The Board of Directors is made up of 5 to 15 members who are elected by their fellow members during the General Meeting. The main responsibilities of the Board of Directors are to:

• See that cooperative values are an integral part of caisse practices
• Establish the orientations and policies of the caisse, as well as its business plan and operating budget
• Hire and supervise the person who will be responsible for the general management of the caisse
• Control the financial management and risk management of the caisse
• Ensure member satisfaction
• Represent the caisse in the community and within Desjardins Group

The Board of Supervision
The Board of Supervision of a caisse ensures, among other things, that:

• Cooperative values are respected, both in the business practices of the caisse and in its management practices
• The principles and rules of the Code of Ethics and Professional Conduct are strictly observed
• Democratic rights and responsibilities are exercised within the caisse
• The caisse fulfills its duties with respect to the cooperative, economic and financial education of its members

The Council of Representatives
The Council of Representatives acts as the voice for the caisses in its region, representing the caisses before Desjardins Group and the community. Each Council is made up of ten elected officers and five caisse general managers. All the members of a Council of Representatives are elected by the officers of the caisses in their region.

To learn more about Desjardins Group
Visit www.desjardins.com/coop.