OLR Bill Analysis
AN ACT CONCERNING DIRECTORS OF CREDIT UNIONS
This bill removes directors emeritus and advisory directors from the definition of a Connecticut credit union "director," which current law defines as a member of a credit union's governing board. It creates a new title of "appointed director" for directors emeritus and advisory directors, and specifies that such people may not receive compensation. The bill adds proposed appointed directors to the list of people whose name, occupation, and address must be stated on the proposed certificate of incorporation in an application to organize a Connecticut credit union. It applies other provisions regarding credit union organization, already applicable to proposed organizers and directors, to appointed directors. These include criminal history background checks and position appointments at the credit union's organization meeting.
Current law allows advisory directors to be in a credit union's field of membership by virtue of their role as advisory directors, regardless of eligibility for membership. The bill eliminates this provision, enabling a person outside the credit union's field of membership to serve as advisory director but not allowing him to be a credit union member. It (1) allows a credit union to provide, with a majority of its governing board's approval, personal liability or indemnity insurance coverage for its appointed directors, as it already can for directors and members of the credit and supervisory committees; (2) adds appointed directors to the list of people considered to be insiders and subject to a credit union's conflict of interest policy; and (3) clarifies that this policy also applies to anyone related to an appointed director by blood, adoption, or marriage.
EFFECTIVE DATE: October 1, 2003
COMMITTEE ACTION
Banks Committee
Joint Favorable Substitute
Yea |
19 |
Nay |
0 |