IOWA CITY -
Board members Fred Mims and Charles Mason, as well as board chair Eldean Borg, survived a challenge from Caroline Dieterle, a candidate nominated from the floor during the annual meeting. The vote came three weeks to the day after a special meeting resulted in a new name favored by management and the board being rejected by the membership.
At the March 21 meeting, Mims received 685 votes, Mason 664, Borg 653 and Dieterle 69. Four ballots were ruled spoiled.
According to UICCU's website, Mims was elected to the board in 2001; and Mason has been on the board for 30 years. Borg said via e-mail he has served on the board for 26 years.
Jeff Disterhoft, UICCU's CEO, said two positives emerged from the vote: "There clearly is a lot of interest in the credit union, and we appreciate people making time in their schedules and coming out to vote," he said. "Second, this serves as a vote of confidence for what the board has accomplished over the years."
Improprieties Alleged
Many of the same members who opposed changing the name of the CU alleged improprieties in the nomination procedure. These members said the three incumbents were renominated in a "closed-door meeting" when the membership was not present, and no opportunity was given for alternate nominations prior to the annual meeting.
In addition, the members complained voting for the board was limited to those in attendance at the annual meeting, with no proxy or absentee votes allowed, and there was insufficient notice of the meeting given to the membership.
Disterhoft countered the nomination process for the board of directors "is the same as in the past 69 years." He said the nominating committee first determines if the board members who have reached the end of their three-year terms are interested in running again.
If members have expressed an interest over the course of the previous year, their names are added to the list of candidates, as well as any other individuals from the community the nominating committee feels are qualified, he said.
During the annual meeting, any member over the age of 18 can be nominated from the floor, and if seconded, that person is eligible for election to the board, Disterhoft explained. If elected, any person must sign UICCU's conflict of interest policy, confidentiality agreement, code of ethics and the board oath.
Just hours before the meeting, Disterhoft told the Credit Union Journal: "We look forward to the democratic process continuing. I know the board is taking steps to make voting easier and are examining mail-in ballots. In addition, we are looking into steps towards more proactively letting members know of their eligibility to run for the board."
The morning after the vote, Disterhoft added: "We have met with folks who have expressed interest in improving governance of the CU, and there is a lot of common ground. We look forward to closing this chapter of our history and getting back to the job of taking wonderful care of our members."
Members of UICCU resoundingly voted to keep its name by an 806-631 margin at a Feb. 28 vote.
UICCU had been scheduled to change its name to "Optiva Credit Union" on March 1. The proposed name had been approved last fall by a 198-192 margin. The revote drew intense interest following a petition drive earlier in the month, weeks of extensive local press coverage and vitriolic letters to the editor by both sides.
Name Change Controversy Lingers
A group of dissident members, which called itself "Sink Optiva," alleged the Oct. 4, 2006, member vote which approved changing the CU's name was improper because an undetermined number of completed ballots were accepted prior to commencement of the membership meeting.
The credit union's management had stated it wished to develop a name that is more open and welcoming to the community. Focus group research has found people believe they must have a connection with the University of Iowa to join, credit union executives said.
Management has denied an allegation made by some of the dissident members that the name change is the first step of a conversion to a bank.
