DFCU Owners Deliberate A SocialContract

DEARBORN, Mich. - (05/15/06) – NCUA made it official last weekthat there is nothing the federal regulator can do to enforce amember petition at DFCU Financial to get directors to call aspecial meeting where members would vote on the directors’recall. A senior NCUA executive said the federal agency isconvinced there is nothing illegal about the directors’rejection of the petition, signed by almost 1,800 members, even ifthe directors’ action appears to violate the creditunion’s own bylaws. Those bylaws require the directors tocall a special meeting when requested by 500 members or more.“That’s a contract between the board and themembers,” the NCUA executive told The Credit Union Journal,of the bylaws. Leaders of DFCU Members United, which forced thedirectors to abandon their quest for a bank charter, weredeliberating over the weekend whether to challenge the board rebuffin court.