RICHARDSON, Texas – Although the task ahead appears daunting, the Texas Coalition for Credit Union Members has not given up hope of influencing Community Credit Union members to vote for retaining the current not-for-profit structure of the credit union. At the June 15 special meeting, the Coalition tried to submit a motion to amend the plan of conversion to "prevent improper insider gain." The motion was not accepted, according to James Monahans, the credit union's hired parliamentarian, because the credit union had chosen not to follow Robert's Rules of Order. Although that is the generally accepted standard for conducting meetings, the credit union had the option of setting its own parameters within the bounds of parliamentary law, he said. The Coalition's next move depends upon NCUA's position, according to Coalition member Mark Arnold. "If NCUA stays firm, the battle will be between NCUA and the credit union. If Community decides to initiate the voting process anew, we will ramp up efforts to communicate with members and lawmakers. We believe if more members are given both sides of the story, more would vote against the conversion," he said. During the special meeting, Arnold voiced his desire for the institution to remain a credit union, saying, "Cooperative principles are something to be proud of. The credit union is extremely healthy financially, and I don't think the Board has made a strong enough case for charter change." In accordance with Community Credit Union's bylaws, the Coalition now is seeking to fill a petition with 500 credit union member names to call a special meeting to consider adding language to the proposed conversion plan. The language reads: "The Charter and By-Laws of the converted institution and all successor institutions shall prohibit any former director, volunteer official, officer or employee of Community Credit Union from: 1) receiving any grant of stock, including restricted stock; 2) receiving any stock options; 3) purchasing stock during the first 25 months after the institution's initial public offering; and 4) receiving any non-cash compensation or benefits exceeding those previously awarded to such individuals in the calendar year preceding the conversion. Immediately prior to any conversion, all current directors, volunteer officials, officers and employees of Community Credit Union must sign a binding oath prohibiting them from accepting any of the aforementioned compensation." The group also wants to craft language that would retain the currently held "one vote per member" principle under the new institution's charter. Admitting that getting member signatures in any other way besides standing outside credit union branches will be difficult, Coalition member Elaine Laroa said, "If the vote carries and the conversion goes through, dissatisfied members will vote with their feet, but it's unfair that they have to walk away without their share of the equity in their financial institution." -

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.