By Ray Birch
WASHINGTON—While attention toward CUNA’s bylaws changes has been focused on membership choice, the new governance structure also gives CUNA the option to significantly reduce the size of its board.
CUNA Chief Policy Officer Bill Hampel explained that the new rules allow for the number of directors to be reduced if CUNA decides that is the best option or if affiliated CUs push for it.
Hampel explained that flexibility in the board size is in line with the new rules being “less prescriptive.”
Hampel said the most significant change to the rules, in a technical sense, is that instead of the bylaws being prescriptive about how things have to happen, the new bylaws set out general statements about how things should happen, “and the details are worked out in board policies.”
“(Allowing for a reduction in board size) is a perfect example of how the new bylaws are less prescriptive than they used to be,” said Hampel. “Previously the bylaws said the board had to be exactly 24, and so many from each district and credit union class size, etc. The new bylaws say the board shall have a maximum of 24 people and could be reduced below that.”
No Need To Consult Membership
Bill Hampel, CUNA
Hampel explained the new structure does not require CUNA going back to its membership if the trade association decides to reduce the board’s size.
“At any time in the future if the board decides a smaller board is more appropriate, the board can set in motion the action to make that happen,” said Hampel.
Hampel emphasized that CUNA is not planning to reduce its board size, saying the current board structure has been working well.
“But it is an option now,” said Hampel. “So if over the next several years if for some reason the membership thinks that a smaller board could achieve better results and if they make themselves heard, the board would have to listen to them as the bylaws now provide for this. But to the extent that this board is functioning well and continues to provide the
right sort of leadership, I don’t think this is an issue.”