Directors of a federal CU may reduce the number of board seats but must obtain a two-thirds vote to do so, according to NCUA. A change in the number of board seats amount to an amendment to the Federal CU bylaws, and therefore, require a two-thirds vote of an FCU's board, NCUA said in a new legal opinion letter. Requiring the bylaw amendment process for changes to the number of directors prevents small minorities of a board from acting to manipulate or concentrate control, the agency said. FCUs may not reduce the number of directors unless a corresponding number of seats are vacant, the regulator pointed out.
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