PEWAUKEE, Wis. — The Wisconsin Credit Union League is joining a handful of other leagues that have adopted resolutions addressing unsolicited merger attempts.

On Tuesday, the league's board of director's put in place a resolution that states third parties do not have a right to interfere in the business operations of a credit union or the ability of its board to act in the best interests of its members. Third parties are also not allowed to provide "inaccurate or misleading" communications to members of another CU, according to the resolution.

"Unsolicited attempts to affect unwanted mergers by encouraging ill-considered decisions to declare dividends can raise serious safety and soundness concerns, and the authority of one credit union to spend funds to influence member votes at another credit union should be subject to serious review by regulators," the resolution states.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, 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.