COLUMBIA, Md. — The Maryland and District of Columbia Credit Union Association is the latest to put in place a resolution against hostile takeovers.
The MDDCCUA board adopted a resolution that states it is the right of the credit union board, after thorough consideration of the best interests of the members, to approve or disapprove a merger proposal. Third parties have no right to interfere in the business operations of a credit union or the ability of its board to act in the best interest of its members, the resolution also states.
The association's resolution also states unsolicited attempts to affect unwanted mergers by encouraging "ill-considered decisions" to declare dividends can raise serious safety and soundness concerns. The resolution also says adequate regulation does not exist to address the numerous issues that are involved with a hostile attempt to bring about a credit union merger.
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MDDCCUA joins the Minnesota Credit Union Network and the Association of Vermont Credit Unions among others in adopting a hostile takeover resolution.
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