Conference 7.286::dcu

264.0. "DCU doesn't need members anymore" by GUFFAW::GRANSEWICZ (I'M DCU and you're not.) Thu Aug 15 1991 14:37

    
    We have been denied access to the DCU management process by changes the
    BoD has made to the DCU bylaws.  Article 6, Section 3 dealing with
    elections was deleted 11/90 by the BoD.  It deals with the nominating
    of people to the Credit Committee (and others, full text is on the way
    to me).
    
    Article 7 (Board of Directors), Section 3 reads:
    
    (11/90)  Any vacancy on the board, credit committee, or supervisory
    committee shall be filled by vote of a majority of the directors then
    holding office.  Directors so appointed shall hold office only until
    the next annual meeting, at which any unexpired terms shall be filled
    by vote of the members, and until the qualification of their
    successors.  Members of the supervisory committee so appointed shall 
    hold office until the first regular meeting of the board following the
    first annual meeting of members at which the regular term expires
    and until the appointment and qualification of their successors.
    
    I pointed this out to Mary Madden.  She says a credit union the size of
    DCU requires the Credit Committee to be paid positions.  When asked
    where that is stated, she says the NCUA bylaws.  Gee, until now, those
    NCUA bylaws have only been guidelines.  Now all of a sudden they are
    requirements.  Mary Madden says DCU doesn't interpret the section above
    to mean that members may vote for members to be on the Credit
    Committee.  In my opinion this is gross disregard for the DCU bylaws.
    How can "shall be filled by vote of the members" be interpretted any
    other way?  I pointed out that the Credit Comm. can have up to 7 people
    on it.  Why can't there be a mix of members (voted in) and full-time
    paid DCU employees?  She says DCU chooses to do it with full time 
    employees only.
    
    Commentary:
    Is there any doubt what has and is happening here?  In my opinion the
    DCU is disregarding those sections of the Bylaws which make DCU a
    credit union.  They can't be bothered with lowly members on the credit
    committee.  Why have volunteers when you can pay three people to do it.
    I'm sure a "regular DCU Joe/Josephine" would have raised an eyebrow or
    two at $18 million going out the door to non-DCU members!  Changes to
    the bylaws by the BoD have been made without notice or approval of 
    its members (not required) and which deny those members an opportunity 
    to participate in 'their' credit union.  
    
    This just confirms what I have said previously.  DCU is dead or near 
    death.  The BoD and senior management have created a monster named 
    Bank of Digital.  We are just now seeing the monster as it rises from
    the depths to offer us 'choices' and to collect our checking fees.
    
    Another Special Meeting Agenda Item:
    Eliminate ability of BoD to change DCU Bylaws without members voting on
    changes.  Just like corporations, put it on the ballot for BoD every
    year.
    
    

        Restore the previous member agreement.
        
        Limit length of service by BoD members to 2 terms.
        
        Require 90 days notice to the members to make increases in fees
        (not changes to floating interest rates) or decreases in services.
        
        Hire an independent outside auditor to look into ALL current DCU
        practices.
        
        Serve ALL members regardless of their geographic locations. My
        suggestion to do this would be to eliminate costly branch offices,
        atms, and other such things, and also eliminate the access fee to
        use network terminals. Turn every ATM in the country into a DCU
        branch office for 99% or our transactions. Leave the few remaining
        DCU offices for things that must be done in person on an
        infrequent basis (mortgage applications, etc.)

And if this hasn't been mentioned/suggested already -

    o Restructure the by-laws wrt the election process of the BoD (or
      any other positions electable by the general membership) to eliminate
      the nominations committee and any other obstructions to an open
      election which preclude a fair chance to John Doe, and thereby serve
      only to protect the incumbents.

-Jack

    
    RE: .2
    
    I have read the "DCU Election Guidelines".  IMO, it is no wonder the 
    current BoD has been there since day 1.  Add to this the ability of the
    BoD to change any of the bylaws (including ones directly affecting them
    and elections) and you have a self perpetuating entity.  I am
    absolutely amazed the provision for a special meeting has survived. 
    Probably because the NCUA wouldn't let them go that far.
    
    BTW, the NCUA must approve all changes to the DCU bylaws.  Now how
    about the MEMBERS granting some approval??
    

    This may be coincidence but ....

    Two banks that offer a competive deal to Digital employees have just
    reported a 25% increase in deposits in the last quarter....

    These banks (part of one holding company) are located near the CXN
    complex and the CXO complex.

    Bob

No, Bob, it's not a coincidence.  I opened up a savings and a checking
account with one of those aformentioned institutions.  I am keeping
my DCU account until I find out what is going to happen at the meeting
Nov 12.  At that time I'll decide whether to close out my accounts at
DCU or my "other bank".

Nanci

    
    RE: .4
    
    Yes, I hear there was a credit union offering "More Choices" out there
    a few months ago.  Must have really paid off big for them... ;-)