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NCUA provides CUs NAFCU-sought flexibility in annual meetings
The NCUA Wednesday issued a Letter to Federal Credit Unions notifying institutions that the emergency exemption granted amid the COVID-19 pandemic to hold membership and board of director meetings completely virtually will expire at the end of this year. However, the agency clarified several areas of flexibility related to holding hybrid meetings and member notices.
“NAFCU appreciates the NCUA heeding our calls for additional flexibility in credit unions’ annual member meeting requirements,” said NAFCU President and CEO Dan Berger. “Even as the COVID-19 pandemic further demonstrated areas in need of modernization, credit unions proved how innovative they are in finding ways to serve members amid disruption. By allowing hybrid meeting formats, and for members meeting both in-person and virtually to count toward quorum in most situations, credit unions can keep members fully informed in the way that works best for them.”
As the Federal Credit Union Model Bylaws permit federal credit unions to hold “hybrid” annual meetings, meaning that members may attend virtually so long as the option to attend in-person is also provided, the NCUA announced that credit unions may count virtual attendance toward the quorum requirement for hybrid annual meetings going forward. The letter also reminds federal credit unions that the bylaws permit:
- federal credit union boards to conduct “virtual-only” meetings for all but one of their board meetings per calendar year. If a quorum of the directors is physically present at the one required in-person meeting, then the remaining directors may attend that meeting virtually; and
- flexibility for distributing member notices, including that notices for member meetings may be sent by electronic mail to members who have opted to receive statements and notices electronically. As such, a paper mailing is not required for all members, only those members who have not opted to receive electronic statements and notices. In addition, the bylaws allow for voting via electronic device, in addition to mail-in ballots for members who wish to do so.
NAFCU had advocated for the NCUA to provide many of these flexibilities for virtual and hybrid meetings as doing so would give members more opportunities to provide input on their credit union’s operation.
NAFCU will continue to work with the NCUA to provide credit unions with regulatory flexibility and modernization to better serve their 134 million members.