OLYMPIA, Wash. - Some Washington state-chartered CUs are considering the pros and cons of adding associate board members to their boards of directors, and have asked the Division of Credit Unions for guidance.
The state regulator said that associates must meet all of the same statutory requirements for fiduciary duty, confidentiality, meeting attendance, and avoidance of conflict of interest that apply to full board members. A state-chartered CU wishing to utilize associate board members must vote to amend its bylaws to include associates, and delineate the limits and conditions under which they serve.
Credit unions that use associates already appear to have chosen from one to three associates.
