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DFCU Case Awaits Judge's Decision on Jurisdiction; Special Meeting Which Could Recall Board Members at Stake

DEARBORN, Mich. - The attempt of initially two, and now three, DFCU Financial members to force the credit union to hold a special meeting at which all or part of the board of directors could be removed now awaits the judge's decision about whether his court has jurisdiction to make...

By David Morrison | Updated on July 18, 2006

DEARBORN, Mich. – The attempt of initially two, and now three, DFCU Financial members to force the credit union to hold a special meeting at which all or part of the board of directors could be removed now awaits the judge’s decision about whether his court has jurisdiction to make a decision in the dispute. The DFCU members took the CU to court after a members group, DFCU Owners United, gathered over 1,700 signatures of CU members seeking the meeting in the wake of the board decision to attempt to move the credit union to a mutual bank charter. DFCU has roughly 160,000 members.

Despite having its roots in the charter argument, the members of DFCU Owners United insist that their call for a special meeting has more to do with the CU refusing to let them see documents related to the conversion decision. The documents, the members argue, would reflect whether the board members fulfilled their fiduciary duty to the CU’s members in the charter change decision.

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