The major national credit union trade groups are urging the federal regulator to amend federal credit union bylaws in ways that could potentially increase member participation in affairs concerning how their institutions are run.
The National Credit Union Administration last year issued a proposal to update and simplify bylaws for federal credit unions for the first time since 2007.
Among the suggestions submitted to the National Credit Union Administration are measures that would increase member notification surrounding credit union meetings, with both the Credit Union National Association and the National Association of Federally-Insured Credit Unions urging NCUA to allow such notifications online as well as in writing.
The two groups also urged NCUA to allow increased online voting for board seats and other measures, suggesting the board amend an article of FCU bylaws that would allow CUs to combine the number of in-person and virtual meetings. CUNA and NAFCU argue such measures could help increase member participation, and NAFCU also called on the regulator to remove a resolution requiring members be at least 21 years old in order to hold elected office at their credit union.
The trades are also calling for NCUA to maintain its current definition of what constitutes a quorum for conducting credit union business, with the current definition including board members, directors and employees.
“Dramatically reducing the potential pool of individuals available to achieve a quorum would be challenging for some FCUs and extremely difficult for others. We are very concerned that if such an amendment were to be adopted, it would have harsh unintended consequences,” CUNA wrote.
NCUA is also proposing changes that would make it easier for institutions to expel members who are disruptive or abusive to staff and operations, or otherwise cause problems for the credit union.
“NAFCU and its member credit unions strongly urge the NCUA to adopt a more streamlined approach to expelling an extremely abusive member because the current avenues are grossly inadequate,” the group wrote.
Both trades suggested a variety of ways bylaws could be amended to clarify that “nonparticipation” at the credit union subject to expulsion include not just abuse, harassment or assault, but neglect or refusal to comply with the Federal Credit Union Act, habitual delinquency or other actions resulting in a financial loss to the CU and more. NAFCU also suggested NCUA remove the requirement that credit unions must post a copy of their bylaws on their website.
