WASHINGTON – CUNA on Monday began distributing a packet of proposed restated bylaws that include the long-awaited option of choice in the national trade association and/or a credit union's state league.
A cover letter signed by Patrick Jury, chairman of the CUNA corporate governance committee, which was obtained by Credit Union Journal, begins by recalling the creation of the trade group in 1934.
"Over the course of 82 years, however, numerous amendments to our bylaws have created a patchwork of overlapping rules that make our governance structure cumbersome, overly complex and unsuited to the challenges we face today," Jury wrote.
CUNA-member credit unions are told the CUNA board is recommending they adopt a "completely new" set of bylaws to provide "effective, open and transparent governance of your association."
CUs are told there are three main issues addressed in changes to bylaws: membership, dues, and board structure and governance. On the membership front, CUNA says, "The proposed bylaws provide credit unions with a choice of whether to belong to their league, CUNA or to both. While we firmly believe that belonging to both your state league and CUNA provides the most value to members, we also believe that it is your prerogative to make that decision."
The CUNA board will establish a new dues formula, Jury reports, with the stated intention of implement a dues formula that will favor "neither large nor small credit unions."
As for the governance issue, the proposed bylaws would allow the CUNA board to adjust its membership from its current maximum of 24 to a minimum of 12. It is noted that any change to the size of the board would require a two-thirds vote of all CUNA's elected directors.
The packet also includes a copy of CUNA's current bylaws and a document comparing current and proposed bylaws.
Credit unions are asked to review the proposed bylaws and cast their vote no later than 5 p.m. Eastern Time on Friday, March 18. Ballots are not being handled by CUNA. Instead, credit unions are directed to send their completed voting materials to Intelliscan, Inc., an election services company based in Phoenixville, Pa.
Results of the vote will be announced March 21, CUNA said.
According to Jury, "This new governance structure will allow CUNA to modernize and become more open, responsive and accountable to all of our members. These proposed bylaws are an important component of that."
CUNA invited credit union representatives seeking more information to send an email to:
Long and Winding Road
The pending vote on the restated bylaws is the latest development in what has been a sometimes dramatic and contentious saga over the past 17 months. CUNA created a System Structure and Governance Task Force that ended up recommending (among other action items) credit unions be given the choice to belong either to their state league or the national association — which went against decades of precedent.
In September 2015, CUNA's board of directors
Last fall the CU community became divided by the issue. Some leagues (Michigan, New York, Ohio, the Carolinas League, and the League of Southeastern Credit Unions, representing Florida and Alabama) voted to allow direct membership without joining CUNA; while others (the Mountain West CU Association, representing Colorado, Wyoming and Arizona, along with leagues in Wisconsin and Utah) issued formal statements supporting the requirement that CUs maintain dual membership.
As more credit unions and state leagues debated the issue, the CUNA board finally voted on Dec. 10 to present the trade association's membership with what they termed a "major revision" of CUNA's bylaws that included membership choice.
When the CUNA board wrapped up its two-day December meeting, the trade association released a statement acknowledging it needed to adapt to the new reality, while trying to appeal to its members to recognize the need to stick together for the sake of advocacy.
Last week, CUNA Chairman Susan Streifel, who also serves as president and CEO of $96 million Woodstone CU, Federal Way, Wash., said the CUNA board is
