Lake Michigan CU Members Question NewOwnership Rights

GRAND RAPIDS, Mich. - (12/10/04) -- Members speaking against LakeMichigan CU's proposed conversion to mutual savings bank duringWednesday's special meeting here expressed their concern over theirvoting and ownership rights after the charter switch. SandyJelinski, president of the $1.1 billion credit union, told them theinstitution will continue to be owned by its depositors/members,even after the initial public stock offering, because of the mutualholding company structure that will be created. Under thatstructure, credit union officials plan to sell less than halfinterest in the new company to the public, leaving controllinginterest with the owners of the holding company--the depositors. Inthe future, additional stock may be sold giving majority ownershipand voting rights to outside shareholders. A final vote tally onthe conversion, which requires two-thirds approval, is not expectedto be completed until next week.