NCUA Notes End of Emergency Exemption for Certain In-Person Meeting Requirements, But League Pleased to See Some Flexibility Measures Remain
In a Letter to Federal Credit Unions (22-FCU-03), NCUA notes that emergency exemptions from certain in-person meeting requirements for federal credit union boards will expire at year-end 2022. A number of emergency exemptions related to credit union annual meetings and board meetings were put in place by the agency during the pandemic.
Of note for federal credit unions, the agency says in its letter that some measures offering flexibility as it relates to meeting and meeting notice requirements will remain in place.
For example, “virtual-only” member meetings will no longer be an option, but hybrid meetings – with both a virtual and in-person option – are permissible, provided quorum requirements are met and such a format is permitted in the credit union’s bylaws.
“We’re pleased to see the flexibility involving the counting of both in-person and virtual attendees toward a quorum,” noted Hunt. “That issue was a specific focus of our engagement efforts with NCUA.”
“We appreciate NCUA giving issues surrounding membership and board meeting requirements the careful consideration they deserve. We still support full virtual meetings, but we thank the agency for providing some degree of flexibility to federal credit unions,” said Carrie Hunt, president/CEO of the Virginia Credit Union League. “Credit unions were quick to address the challenges associated with Board and membership meetings posed by the pandemic. Credit unions proved they could leverage today’s technology to successfully balance the governance needs and orderly operation of the credit union with the protection of members’ interests and their ability to participate in the affairs of their credit union.”
Other measures promoting flexibility are also spelled out in the agency’s letter:
- The NCUA’s Federal Credit Union Bylaws permit federal credit union boards to conduct “virtual-only” meetings for all but one of their board meetings per calendar year. Further, 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.
- The NCUA’s Federal Credit Union Bylaws permit flexibility for distributing member notices. Specifically, the bylaws provide that notices for member meetings may be sent by electronic mail to members who have opted to receive statements and notices electronically.4 As such, a paper mailing is not required for all members, only those members who have not opted to receive electronic statements and notices.
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