RICHMOND, Va.–A group of Virginia Credit Union members who have challenged its board election and who had hoped to raise objections during Wednesday’s annual meeting were unable to do so, as the virtual presentation did not allow for any member input.
Those protesting the election process are again calling for Virginia’s state regulator to get involved.
The three candidates who were running for the three seats on the board included two incumbents (one was Chairman Robert Jones) were elected. The VACU annual meeting webcast was shared by members of the group challenging the election as part of a separate webcast they were hosting,
The individuals who have been protesting the election process at VACU alleged after the credit union’s annual meeting that it was conducted in violation of Virginia state law, as members were given no opportunity to have any kind of input.
In a statement to CUToday.info, a spokesperson for Virginia CU said, “Virginia Credit Union has an established governance process, defined in our bylaws, for the election of members to its board of directors. Virginia Credit Union's board followed these procedures consistently in nominating candidates for the board of directors ahead of the 2022 Annual Meeting. We respectfully disagree with claims questioning the credit union's election procedures. The board has followed its established process.”
CUToday.info also reached out to Virginia Credit Union for comment following the meeting and had not received a response as of this reporting. CUToday.info will update the story if a comment is provided.
Ahead of the meeting, members of the group had said if there were to be a voice vote, they planned to vote no.
In addition, one person who participated in the webinar hosted by the group opposing the election claimed he was able to log into the VACU annual meeting and cast a vote, even though he is not a member.
Candidates Say They Weren’t Considered
As CUToday.info originally reported here, four people who said they met the qualifications to be board candidates under the credit union’s bylaws, including filing all the paperwork necessary and by the deadline to do so, all said they had the same experience and that VACU indicated it would follow up and then never did so. Instead, the four people seeking to be candidates said they had to follow up themselves and were each informed they had not been selected by the nominating committee.
The four people seeking to run for a board seat—Frank Moseley, Richard Walker, Tori Jones and Kati Hornung—have called the election a “sham” and alleged the process protected incumbent board members or their hand-picked candidates. The group said in earlier remarks that the CU’s chairman selects members of the Governance Committee that selected members to run for board seats, including the same CU chairman.
During a virtual event held just prior to the VACU virtual annual meeting, Moseley said, “None of us wanted to be here today. We were all hoping to be in that meeting and voted on to be elected.”
It was unclear from the VACU virtual meeting how many members voted for the three board candidates, but earlier in the meeting, after the minutes were read, 140 people voted in favor of accepting them.
According to the group protesting the election, Virginia Credit Union’s bylaws say 10 people can qualify as a quorum at VACU, which has 310,000 members.
Much of Presentation Prerecorded
During the 30-minute annual meeting, prerecorded video messages by VACU Chairman Jones and CEO Christopher M. Shockley shared updates on the $5-billion credit union’s performance and some of its efforts in its communities.
After several other reports, Brian Jackson, chairman of the credit union’s Governance Committee, appeared in a prerecorded video in which he said he and the committee had reviewed qualifications for candidates for the board before announcing members could then vote for the three candidates: Rob Jones, Tracy McCabe and Kimberly Baine. Members were given 30 seconds to cast their votes online, before Jackson announced the three had been elected.
Jeers From Group
The meeting concluded shortly afterward, with the credit union saying any questions should be sent to VACU via email, and it was followed by hoots and derisive laughter from the group protesting the election.
“I never thought it would be this staged,” said Moseley. “I’m caught between being laugh-out-loud outraged and downright angry. This is not a democracy. I am really disappointed to say the least. The fact we had no opportunity to even enter questions in the chat and that we submit questions via email….
“It's with a heavy heart that I know I must carry on this fight,” he continued. “This needs to be taken to the legislative level where we can see some real change. And the State Corporation Commission has some accountability in this.”
The group had earlier filed complaints with NCUA and the state regulator. NCUA said it wasn’t a matter for the federal regulator. The State Corporation Commission said in a statement to CUToday.info, “The Bureau of Financial Institutions cannot provide information about specific complaints that it may receive due to confidentiality requirements under § 6.2-101 of the Code of Virginia. As a general matter, the Bureau’s standard process when it receives a complaint is to gather information about that complaint and review such information to determine if further action is appropriate.”
The Bureau had not provided any response prior to the March 23 election.
The group protesting the election also said they plan to send the recording of the meeting Corporation Commission Commissioner Joe Face for his review.
‘Incumbent Upon Us’
“As member-owners, it is incumbent upon us to make sure this fight does not die in some bureaucracy,” said Moseley. “We are part of a cooperative that is supposed to have every member recognized with one vote. We are really fighting for our democracy.”
The four people who had sought board seats and who said their nominations were never considered, all of whom are community activists, have indicated they want to see VACU far more involved in its communities, especially in financial education and in extending credit to underserved communities.
Moseley, who is a certified financial literacy instructor and who founder of the Social Education for Economic Development Initiative (S.E.E.D. 4 All, said the group will note be giving up.
‘Not the End’
“This is not the end, this is just the beginning,” Moseley said after the election results were announced. “Being a part of this credit union should mean inclusivity. I hope what we are doing is not looked at as a shot in the dark. We hope that someday we create the change we want to see.”