Irate Members Seek Ouster Of Board AtDFCU Financial

Register now

DEARBORN, Mich. - (04/04/06) -- Dissident members of DFCU Financialbegan a petition drive Monday aimed at removing all nine members ofthe credit union's board before June's final vote on the biggestcredit union conversion to bank. The members group, called DFCUOwners United, seeks to force a special meeting prior to the June21 meeting when the conversion is expected to be ratified. Memberswould vote at the earlier meeting to remove all nine directors,sources told The Credit Union Journal. The group needs just 500 ofthe credit union giant's 165,000 members to sign on to the petitionto force the ouster vote. Those names may be collected via theInternet, according to a new legal opinion issued by NCUA. Amongthe claims in the petition are that directors have violated thecredit union's bylaws and NCUA regulations by failing to provideall records and minutes of board meetings connected with theconversion. Members of the $1.8 billion credit union have alreadybegun the 90-day ballot on the unprecedented conversion bid, whichwill culminate at the June 21 special meeting at the Hyatt RegencyDearborn. The petitions, which could be presented to the DFCUFinancial chairman as early as next week, ask that a specialmeeting be called within 30 days to vote on the removal of all ninedirectors.

For reprint and licensing requests for this article, click here.