Search
 

Directors’ Personal Risk Not Increased, Says Attorney

MAUI, Hawaii Much noise was made following the NCUAs issuance of its regulation concerning the responsibilities of federal credit unions boards of directors last year. But Brian Witt, partner with Farleigh Wada Witt, despite some insurance providers assertions, said I dont think your personal risk is greatly increased.

By Sarah Snell Cooke | Updated on January 31, 2012
Brian Witt got laughs discussing how the NCUA does not like to lose.

MAUI, Hawaii — Much noise was made following the NCUA’s issuance of its regulation concerning the responsibilities of federal credit unions’ boards of directors last year. But Brian Witt, partner with Farleigh Wada Witt, despite some insurance providers’ assertions, said “I don’t think your personal risk is greatly increased.”

Witt said the WesCorp suit against the officers and directors provided some insight into the matter. Seven credit unions sued the WesCorp board and officers for negligence and gross negligence, and later the NCUA took over the case, adding fraud to the charges against the corporates’ former executives. He noted that while the case against the officers rages on, the judge dismissed the charges against the directors, finding that they had acted with an acceptable level of business judgment and no breach of fiduciary duty.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.