CHARLES CITY, Iowa — Member efforts to change leadership at Family Community Credit Union appear to have been checked.
In February, members voted to dismiss the board and suspend CEO Dawn Swaningson during the CU's annual meeting. However, a few days later, the Iowa state regulator notified members that the annual meeting vote was invalid, ruling that the rare board ouster vote was not conducted properly.
Swaningson was still at the helm of the $17 million CU when Credit Union Journal recently reached out to determine if the alleged tense climate within and around FCCU had settled down, and if the membership had attempted additional action. However, Swaningson did not return calls.
One day after the attempted ouster, Credit Union Journal learned that employees at the main office alleged they were being managed poorly by Swaningson. The membership vote was an apparent show of support for the staff. All five employees of Family Community's main office walked out the door and quit three days before the annual meeting.
Taking The Reins
Swaningson assumed the CEO role at the end of 2012. Andrea Webster, an FCCU senior loan officer since 2007 and the first to walk out, alleged working conditions deteriorated quickly after Swaningson took over for retired CEO Michael Schear.
According to accounts from those present at the annual meeting, members shouted at board members and broke down in tears, not only voting to dismiss the board of directors and suspend Swaningson, but also to reinstate staff who had walked off the job and appoint a new board and CEO.
The State's Decision
JoAnn Johnson, Iowa's Superintendent of Credit Unions, explained her office's decision to CU Journal: "A majority of members present at any meeting may vote to modify, amend, or reverse any act of the board of directors or instruct the board to take action not inconsistent with the articles, bylaws, or (chapter 533.203A of Iowa Code). However, a motion to dismiss the board of directors is not a motion to modify, amend, or reverse an act of the board of directors, nor is it a motion to instruct the board to take a particular action. Even if it were such a motion, the Code provides that in order to be binding upon the board of directors, the motion must be put to a vote of all eligible members, not just the members in attendance at a particular meeting."
Following the state's decision, Family Community CU's board released a prepared statement that shared its support for the new CEO, saying: "FCCU's board is confident in Dawn Swaningson's ability to lead the credit union in the best interests of our members."
