Buyer question 01
Can a federal credit union hold board elections online?
Yes, if the board chooses the bylaws' electronic-or-mail option (Option A4). Members who can't or won't vote electronically must still be able to vote by mail ballot, and the election tellers must test the system's integrity during the vote. NCUA has said it would be reluctant to approve entirely electronic voting.
See how the 100 largest credit unions run board elections in our Credit Union Board Election Benchmark.
Votem is a fully managed online, phone and mail election provider for unions, pension funds, credit unions and associations; it has processed more than 13 million votes for clients in the U.S., Canada, the U.K., Australia and Singapore.
(c)(2) One mail ballot… as well as instructions for the electronic election procedure… members without the requisite electronic device necessary to vote on the system may vote by submitting the enclosed mail ballot… For members who have opted to receive notices or statements electronically, the mail ballot is not required…
(c)(3) The election tellers verify… the name of the voter and their credit union account number as registered in the electronic balloting system. The election tellers will test the integrity of the balloting system at regular intervals during the election period.
(c)(6) If the electronic balloting system malfunctions, the board of directors may, in its discretion, hold the election by mail ballot only…
[the Board] would be reluctant to approve any bylaw amendment allowing for entirely electronic voting.
Sources: 12 CFR Part 701, Appendix A — Federal Credit Union Bylaws · Federal Credit Union Bylaws final rule, 84 FR 53278
Buyer question 02
How must a credit union keep board-election ballots secret?
NCUA's official commentary on the bylaws says members' votes must stay confidential from all interested parties. If the process doesn't separate a member's identity from the ballot, a federal credit union should use a third-party teller with sole control over completed ballots.
An FCU must establish an election process that assures members their votes remain confidential and secret from all interested parties. If the election process does not separate the member's identity from the ballot, FCUs should use a third-party teller that has sole control over completed ballots… FCU employees, officials, and members must not have access to ballots identifying members or to information that links members' votes to their identities.
Sources: 12 CFR Part 701, Appendix A — Federal Credit Union Bylaws
Buyer question 03
When does a credit union board election start?
Under bylaw Options A2–A4, the chair appoints the nominating committee at least 120 days before the annual meeting. The committee files nominations at least 90 days before, members are told about petitions at least 75 days before, petitions are due 40 days before, and ballots go out at least 30 days before.
| Timing | Required step | Authority |
|---|---|---|
| 120 days | Chair appoints a nominating committee of three or more members. | Art. V, Options A2–A4, §1 |
| 90 days | Nominating committee files its nominations with the secretary. | Art. V, Options A2–A4, §1 |
| 75 days | Secretary notifies eligible members about petition nominations. | Art. V, Options A2–A4, §1 |
| 40 days | Petition nominations are due under the applicable bylaw option. | Art. V, Options A2–A4, §1 |
| 30 days | Secretary mails the printed ballot or notice of ballot when a ballot is required. | Art. V, Option A4, §2(b) |
At least 120 days before each annual meeting the chair will appoint a nominating committee of three or more members…
(b) At least 90 days before the annual meeting, the nominating committee files its nominations with the secretary… At least 75 days before the annual meeting, the secretary notifies, in writing, all members eligible to vote that they may make nominations for vacancies by petition signed by 1% of the members with a minimum of 20 and a maximum of 500.
Sources: 12 CFR Part 701, Appendix A — Federal Credit Union Bylaws
Buyer question 04
What happens if the election is uncontested?
If the number of nominees equals the number of open seats, there's no ballot and no nominations from the floor. A member petition is the only way to add a candidate to the committee's slate, and that can still force a ballot.
The written notice must specify that the credit union will not conduct the election by ballot and there will be no nominations from the floor when the number of nominees equals the number of open positions.
Sources: 12 CFR Part 701, Appendix A — Federal Credit Union Bylaws · Federal Credit Union Bylaws final rule, 84 FR 53278
Buyer question 05
Can annual meetings be virtual?
Hybrid, yes; virtual-only, no. Since 2020, every federal credit union can let members attend virtually, as long as an in-person meeting is also held. The COVID-era exemption for virtual-only meetings expired on December 31, 2022. The adopted bylaws and applicable notice and quorum requirements still govern the meeting format.
This credit union may permit virtual attendance and participation in the annual meeting, provided that an in-person meeting complying with the geographic requirements of this paragraph is also held.
This emergency exemption will expire on December 31, 2022.
Sources: 12 CFR Part 701, Appendix A — Federal Credit Union Bylaws · NCUA Letter 22-FCU-03 — expiration of emergency exemption
Buyer question 06
What about state-chartered credit unions?
State-chartered credit unions follow their state's credit union law and their own bylaws, not the federal bylaws. Some states address electronic ballots directly. A charter-specific review matters because state provisions can set potentially different notice, paper-ballot, ballot-preservation, and election-procedure requirements.
(b) The board of directors, before holding an election… that uses electronic balloting… shall establish written election rules, including procedures to: control, tabulate and retain ballots; identify invalid ballots; and handle disputed election results and tie votes.
the directors may be elected exclusively by mail ballot or electronically in accordance with regulations adopted by the Commissioner, if: (1) The board… by resolution posted conspicuously… at least 90 days before the annual meeting… authorizes the election of directors exclusively by mail ballot or electronically…
(A) Voting by proxy, by mail ballot, or by electronic ballot by members is permitted if a provision for the use thereof and minimum standards are contained in the credit union's code of regulations… If a member does not have access to an electronic ballot, the member must be provided a paper ballot on request.
By a majority vote of members voting by mailed or electronic ballot…
Other states: check your state's credit union act and your bylaws.
Sources: Texas, 7 TAC §91.302 · Maryland, Fin. Inst. §6-329(a) · Ohio Adm. Code 1301:9-2-02 · Iowa Code §533.203(3)(a)(2)