NEWS: As the COVID-19 pandemic continues, the state’s Office of Credit Unions has issued a new letter, extending into 2022 the flexibility that it has provided for Wisconsin state-chartered credit unions to conduct annual meetings remotely. The letter reiterates guidance that was issued last year.
OCU Director Kim Santos begins the letter by reminding credit unions that the OCU’s model bylaws require them to hold annual meetings by July 1; however, the letter goes on to give credit unions latitude in how and when they hold their meetings. The letter covers four general topics:
- Conducting meetings remotely: Because of the ongoing pandemic, the letter encourages credit unions to hold their 2022 annual meetings virtually. “At this time, we are not requiring credit unions to make a formal amendment to their bylaws due to changes in the format because of the pandemic,” the letter says. It goes on to explain that the OCU will work with The League to develop bylaw language that may be used. “In addition, we will work with credit unions individually to ensure their bylaws provide the necessary guidance for future meetings.”
- Postponing meetings beyond July 1 if a virtual meeting isn’t an option: Director Santos writes that the pandemic affects credit unions differently, “depending on their size, complexity, and circumstances. If you cannot conduct a virtual meeting, it may be best to postpone the meeting until later in the year when it may be more appropriate. Under such circumstances, the OCU will not penalize a credit union for failing to meet the requirement to have the meeting by July 1, 2022 so long as a meeting is held prior to year-end 2022.”
- Using alternative election methods: Credit unions should see what their bylaws say about the required process for electing directors (in Article V, Section 3, 4 or 5). “For 2022, the OCU will allow credit unions to amend the process and will allow alternative methods if the election can be done fairly and with full member participation. If the election cannot be done fairly or with full member participation and/or is contested, it may be best to postpone the annual meeting until a method to conduct a fair election can be developed and implemented. Please note, however, this does not relieve the requirement to have an annual meeting in 2022.”
- Additional reminders: The letter reminds credit unions to communicate with members about the meeting date and how the meeting will be conducted. In addition, it asks credit union boards to “document any decisions regarding scheduling the annual meeting and election of directors in board meeting minutes.”
Recently, the NCUA released Letter to Credit Unions 21-FCU-06, extending into 2022 the flexibility that the agency has provided to FCUs to conduct their meetings virtually.