NCUA permission for all-virtual annual meetings set to expire

A National Credit Union Administration measure that allowed federally chartered credit unions to hold annual meetings virtually during the pandemic is set to expire on Dec. 31.

Traditionally, at least 15 people had to attend annual meetings in person for them to be official. But the NCUA issued letters in March 2020, November 2020 and November 2021 that temporarily permitted entirely remote meetings of membership or boards of directors provided two-thirds of a credit union's board voted to OK them through the addition of an amendment to the agency's bylaws.

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Todd Harper, chairman of the NCUA, explained that the agency thinks credit unions should return to in-person meetings as social-distancing requirements have eased. 

"Federal credit unions that have already adopted the bylaw amendment may retain it in their bylaws, but it will not be applicable after the end of 2022 unless [the] NCUA issues a new notification allowing federal credit unions to invoke it," Harper said in a letter earlier this month.

Harper recommended hybrid meetings, which were always allowed as long as a quorum of a minimum 15 people were physically present, as a suitable option for many credit unions. Hybrid meetings can satisfy the quorum requirement, reduce the costs associated with in-person gatherings and allow members without the technological capabilities for attending remotely the opportunity to be involved.

The National Association of Federally-Insured Credit Unions and other trade groups had applauded the agency for reacting promptly at the beginning of the pandemic to ensure that meetings weren't canceled. However, Dan Berger, president and chief executive of NAFCU, agreed with Harper that hybrid meetings are a good option now.

"Even as the COVID-19 pandemic further demonstrated areas in need of modernization, credit unions proved how innovative they are in finding ways to serve members amid disruption. … By allowing hybrid meeting formats, and for members meeting both in person and virtually to count toward quorum in most situations, credit unions can keep members fully informed in the way that works best for them," Berger said.