Voting Begins On DFCUConversion

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DEARBORN, Mich. - (03/27/06) – The Supervisory Committee ofDFCU Financial last week rejected an appeal from a prominent creditunion member and leader of a dissident members group, kicking offthe voting on the conversion of the $1.8 billion credit union tomutual savings bank, the biggest conversion ever of a credit union.In separate letters to Linda Malec, former chairman of the creditunion giant and a leader of DFCU Owners United, and to NCUA, theSupervisory Committee said it saw no merit in Malec’sobjections to the process undertaken for the conversion. The panelalso said a resolution adopted by voice vote by fewer than 70 DFCUmembers at the February annual meeting asking the conversion behalted is non-binding because so few members participated.“The opinion of 68 members on the issue is not relevant to,and could potentially mislead the 141,000 voting members of thecredit union,” said the letter, a copy of which was obtainedby The Credit Union Journal. After rejecting the claims, DFCU beganlast week mailing the first of three rounds of ballots to members,who can begin submitting their votes immediately. Experts on creditunion conversions say most of the votes are usually cast on thefirst of the three mailings.

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