The NCUA’s emergency exemptions providing flexibility to federal credit unions regarding certain in-person meetings during the pandemic expires on Dec. 31, 2022, according to an agency letter to credit unions on Wednesday.
In March 2020, November 2020 and November 2021 the NCUA sent letters to federal credit unions providing them flexibility during the pandemic related to annual meetings, recognizing that the COVID-19 pandemic had created challenges for federal credit unions and their members.
The flexibility provided that a federal credit union could adopt at any time, by a two-thirds vote of its board of directors, and without additional NCUA approvals, a bylaw amendment to Article IV of the NCUA’s Federal Credit Union Bylaws.
“The NCUA does not believe that current circumstances continue to warrant federal credit unions to invoke the subject bylaw provision beyond year-end 2022,” the letter states. “Federal credit unions that have already adopted the bylaw amendment may retain it in their bylaws, but it will not be applicable after the end of 2022 unless NCUA issues a new notification allowing federal credit unions to invoke it.”
Key takeaways:
- Virtual-only member meetings will no longer be an option, however federal credit unions may hold hybrid meetings. Quorum requirements still must be met for hybrid meetings, and federal credit unions may count attendees at both the virtual and in-person components toward those requirements.
- Federal credit union boards may conduct virtual-only meetings for all but one of their board meetings per calendar year. If a quorum of directors is physically present at the one required in-person meeting, then the remaining directors may attend that meeting virtually.
- The agency’s bylaws permit flexibility for distributing member notices, specifically, notices for member meetings may be sent by via email to members who have opted to receive statements and notices electronically. Paper mailing is only required for those who have not opted to receive electronic communications.