Conversion Opposition Group Banking OnNCUA Action
RICHARDSON, Texas - (06/22/05) -- The Coalition for Credit UnionMembers, the group opposing Community CUs conversion to abank charter, were disappointed but not surprisedthat the $1.4-billion CUs membership voted in favor of themove and suggested the primary battle now is between Community CUand the NCUA, which has already said it will not validate the vote(see related story). This is probably done if NCUAdoesnt stand firm, said Mark Arnold, a CCU member whohelped found the coalition and a former CCU employee. Wehave encouraged the NCUA to stand firm. While the coalitionmay look into other legal recourse available to members of CCU,Arnold noted the group simply doesnt have the funds requiredfor legal action. The board and management team of CommunityCredit Union will claim victory, but since NCUA has already saidthis vote is invalid, they really shouldnt. Thecoalition praised CCU CEO Gary Base and the board for allowing theopposition group to set up a table to gather signatures for apetition effort to call another special meeting to amend theconversion plan and to hand out anti-conversion pins down the hallfrom the special meeting and for allowing ample opportunity forcomment at the special meetingbut members of the group werealso frustrated that the board and management summarily rejectedany attempt at compromise or change to the conversion plan. Thecoalition had banked on CCU following Roberts Rules ofOrder, which would have allowed the group to make motions from thefloor to amend the conversion plan, but the CU said it does notfollow Roberts Rules of Order. As a result, the coalitionnever had a chance to put forward its proposal that the conversionplan be amended to prohibit former directors, volunteers, officersof employees from receiving any stock options, purchasing stockduring the first 24 months after the institutions initialpublic offering or receiving any non-cash compensation or benefitsexceeding those previously awarded to such individuals in thecalendar year preceding the conversion. The group had also hoped toamend the conversion plan to retain the one member, one voteprovision post-conversion.