NCUA adopts annual meeting, board meeting flexibility for FCUs
A few weeks ago, we blogged about holding virtual meetings into 2021 and the limitations of guidance issued by NCUA back in March 2020 with regard to the ongoing COVID-19 pandemic. Many federal credit unions (FCUs) have asked about holding virtual meetings next year, and whether NCUA has provided any flexibility for the requirement that at least one meeting of a FCU’s board be held in person.
Specifically, while the March guidance allowed FCUs to adopt a bylaw provision that would allow the annual in person meeting to be held virtually under certain emergency situations, four requirements must be met for that amendment to be permissible to use. One of these requirements was that “NCUA has issued general or specific guidance notifying the credit union that it is appropriate to invoke this bylaw provision.” However, NCUA had only indicated the agency thought this was appropriate though December 31, 2020. FCUs that usually hold their annual meetings in the early parts of 2021 were already thinking ahead to how to conduct these meetings safely, especially since the FCU bylaws require that members be provided notice at least 30 but no more than 75 days’ before the meeting.
Meanwhile, the FCU bylaws require that at least one board meeting be held in person, although if a quorum is present, the remaining board members can participate by audio or video teleconference. Given the continued spread of COVID-19 in many communities, many FCUs continued to have concerns about holding these meetings in person.
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