Community CU Members File Complaint OverBank Bid
DALLAS - (05/18/05) -- A group of Community CU membersfiled a complaint Monday with the Texas CU Department alleging thecredit union giant's proposed conversion to mutual savings bankviolates state law. The complaint also claims credit uniondirectors have violated their fiduciary duty to members. Among thealleged violations of state law: the $1.4 billion credit union'sdisclosures have been inadequate; the credit union has encouragedmembers to vote early and then "unilaterally imposed a ruleprohibiting members from changing their votes after becoming moreinformed on the issue"; members opposed to the conversion have notbeen allowed to present their position to the full credit unionmembership; and the directors' vote to convert to a mutual savingsbank constitutes a breach of their fiduciary duty of loyalty to themembership as directors and management are in a position to receivesignificant monetary and non-monetary benefits not open to themembership as a whole. The complaint was filed by the TexasCoalition for Member Trust, which has changed its named to theTexas Coalition for CU Members.