Compliance Blog

NCUA recently released a letter to clarify when a federal credit union can declare a board seat vacant.  As you may recall, NCUA’s model bylaws allow a board of directors to declare a director’s seat vacant if the director regularly fails to attend board meetings or fails to perform the duties of a director. 

But what does "fails to perform the duties" really mean?  In the letter, NCUA clarified that abstaining from board votes or disagreeing with other board members does not constitute "failing to perform" the duties of a director.

Read all about it here.  The letter does a great job of discussing the two different scenarios involving the removal of directors.  Good stuff.

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We've had a few calls from credit unions having problems when trying to submit their December 2008 5300 data.  Many of the problems were due to a glitch in the software.  Read about it here.  NCUA does a good job of explaining the situation and providing a quick fix.