Article Archives >> Lead Stories >> July 1-15, 2009
Preview of Article:
Credit Union May Expel
Members for “Inimical” Conduct”
Court says Board may define “cause”
to include anything Board considers inimical
When several Directors and depositing members of a Washington state-chartered credit union objected to proposals to convert the credit union to a mutual savings bank and established a separate nonprofit to oppose the move, the majority of the Board moved to quash the dissent.
Operating pursuant to the state’s credit union statute, which permits removal for “cause,” it amended its bylaws to define cause to include “any other reason which in the opinion of the Board members voting for the expulsion agree is inimical to the bests interests of the Credit Union.” It then expelled the two directors, a member of a supervisory committee, and two depositors from membership in the organization.
Article Archives >> Lead Stories >> July 1-15, 2009
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