Members of DFCU Financial Federal Credit Union in Dearborn, Mich., began a petition drive last week to remove all nine of its directors before a June vote on its plan to convert to a mutual savings bank.
The $1.8 billion-asset DFCU, which serves employees of Ford Motor Co., would be the largest credit union ever to convert.
But a members' group called DFCU Owners United, which opposes a conversion, is seeking to force a special shareholder meeting before the one scheduled for June 21, sources told The Credit Union Journal. The group needs just 500 of the credit union's roughly 165,000 members to sign the petition to schedule the special meeting. Names may be collected through the Internet, according to a legal opinion recently issued by the National Credit Union Administration.
Among other things, the petition claims that directors have violated credit union bylaws and NCUA regulations by failing to provide all records and minutes of board meetings in which the conversion plan was discussed. DFCU announced its conversion plan in December.
