REGULATION NO. 2 - CREATION OF NEW LOCALS

2.1 MINIMUM NUMBER OF MEMBERS

1. New Locals shall have a minimum of fifty (50) members.

2. Notwithstanding the provision above, a new Local with less than fifty (50) members may be created if the new locality is at least one hundred (100) kilometers from the existing Local and it is not feasible to service the new Local from the old Local.

2.2 VOTING PROCEDURE

1. Members who wish to form a new Local shall advise the existing Local of their intentions and provide a petition signed by twenty-five percent (25%) of the affected members supporting the formation of the new Local before a formal vote is conducted;

2. The members who wish to form a new Local shall conduct a vote and provide evidence that the majority of the affected members agree to its formation;

3. For the purpose of this regulation, affected members are defined as the members who will form the new local;

4. The Regional Vice-President of the region shall be present to supervise the  vote;

5. The Regional Vice-President shall confirm the validity of the vote to the Executive Council;

6. The ballot shall clearly express the question on the formation of a new Local;

7. The Executive Council shall approve the formation of a new Local by simple majority vote; and

8. A new vote cannot be held before twelve (12) months, if a majority of the affected members of the proposed new Local vote against the creation of a new Local.

2.3 EXCEPTION

Notwithstanding the provisions above, the Executive Council shall have the authority, by a two-thirds (2/3) majority vote, to establish new Locals when the Executive Council believes that it is in the best interest of UTE to do so.

2.4 DIVISION OF FUNDS

1. The funds on deposit of the existing Local shall be divided on a pro-rata share based on the number of members going to the new Local from the existing local;

2. The amount of funds on deposit will be determined by the Regional Vice-President responsible for the existing Local, in consultation with the existing Local President; and

3. The month in which the Executive Council approves the establishment of the new Local is the month in which the amount of funds on deposit will be considered for distribution to the new Local.