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Indeed Mr. Umholtz, a Few can `Hijack' a Credit Union

In his opinion in the April 26 issue, Marv Umholtz unwittingly highlighted the flaw with the conversion process. He wrote, "Through a gaping flaw in credit union governance rules, a miniscule fraction of a credit union's membership can hijack the institution and thwart the will of the majority."

By Staff Writer | Updated on May 09, 2006

In his opinion in the April 26 issue, Marv Umholtz unwittingly highlighted the flaw with the conversion process. He wrote, “Through a gaping flaw in credit union governance rules, a miniscule fraction of a credit union’s membership can hijack the institution and thwart the will of the majority.”

Interesting thought, that a small group (say 12-15 board members) can hijack a thriving credit union and turn it into a bank. Even more interesting that in every case where stock was issued this “miniscule fraction” came out with significant financial gain. I haven’t heard to date of one board and CEO that signed an agreement so they would not receive financial gain in greater proportion than any other member. I believe the 1,000-plus signers of the petition constitutes more of the will of the members than the (financial?) desires of the dozen or so members of the board.

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