The House of Representatives passed a bill last week that eases the annual meeting requirements for credit unions.
The Credit Union Board Modernization Act, which passed via a voice vote without a formal tally, would reduce the minimum number of meetings from 12 to six. The bill, which was sent to the Senate, includes exceptions for CUs that receive low marks from regulators on their financial condition or operations or have operated for five years or less.
Prior to the bill’s passage, the National Association of Federally-Insured Credit Unions, Defense Credit Union Council and Credit Union National Association sent a joint letter to Congress expressing their support for the legislation.
“This outdated board meeting requirement can place a burden on credit union staff and their volunteer board members, especially smaller credit unions with few employees and those in rural areas,” they wrote. “The amount of resources it takes for a credit union to run a monthly board meeting can shift employee time away from the services that a credit union provides to its community.”