OLYMPIA, Wash. — Washington's Department of Financial Institutions has issued a letter detailing how the state's credit unions can add "associate board members" to their boards.
So-called associate board members are appointed to their positions by the board but are not allowed to vote. They also may have shorter terms than regular board members.
John Annaloro, CEO of the Washington Credit Union League and Linda Jekel, director of Credit Unions for the DFI, agreed that the new board members may help CUs expand their boards and bring in new blood.
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Traditionally credit unions have used the supervisory committee as a place to vet and train new board members, Annaloro explained, but the length of time in that commitment was seen by some CUs as being too long to serve their purposes in this regard.
"Let's say a credit union has a board member who has been serving and serving well for years," Annaloro said by way of example. "Even though their service has been strong and is strong, the credit union might benefit from having a board member or members from parts of their field of membership which has not generally represented on the board."
The associate board members might represent younger members or other populations, such as those that reside in an underserved or lower income community.
Jekel said DFI issued the letter because while it supported the idea of associate board members, it also wanted to make sure the position was somewhat standardized, with CUs aware of the fiduciary, confidentiality, and other requirements that go along with the position.
Jekel said that even though associate board members cannot vote, they do have fiduciary responsibilities in that they may take part in discussions that lead to votes.
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