DFCU Members To Proceed With BoardRecall
DEARBORN, Mich. - (04/19/06) Irate members of DFCU Financialsaid Tuesday night they will go forward with the recall of the ninedirectors who voted to convert the credit union giant to mutualsavings bankeven after the board agreed Monday to withdrawits bank application. DFCU Owners United submitted 1,762 writtensignaturesmore than three times the required amount--on apetition urging a special meeting where the angry members hope tooust the entire board. We were pleased to learn that theboard of directors withdrew its application for conversion,said Linda Malec, one of the leaders of the members groupand former chairman of the credit union. This was asignificant first step, but members want more. Prior to and duringthe voting process, the credit union failed to explain how themember-owners would benefit. We have been stonewalled at every turnin our request for information about the due diligence process andto learn whether the decision for conversion was based on thepersonal interests of the directors, officials and employees of thecredit union. Under the credit unions bylaws, thechairman of the board must call a special meeting within 30 days ofreceiving the written request/petition. At the special meeting eachdirector will be given a chance to explain their actions and defendthemselves against the recall. The members present will then voteseparately on recalling each director. The whole process ofapplying to convert from a not-for-profit credit union to afor-profit mutual savings bank appears to have been flawed,said Malec, who served as chairman of the board for 10 years.This responsibility rests clearly on the shoulders of theboard of directors. At $1.8 billion, DFCU is the biggestcredit union to ever seek a bank charter.