You are being asked to weigh in on the structure of the Supervisory Committee, one of your Credit Union’s governing committees. The Board of Directors and Supervisory Committee are recommending that the members approve this motion. We hope that you will be able to vote “Approve” on the attached ballot.
In 2017, a change to California law was enacted allowing California credit unions to adopt an audit committee in lieu of a supervisory committee. This is a change that credit unions can adopt to bring their volunteer community into line with the structures used in public companies and other types of corporations. An audit committee is appointed from among the directors (and is made up of at least a majority directors); by contrast, a supervisory committee is elected by the members and cannot be directors. The responsibilities and function of the two committee types otherwise overlap—they are responsible for overseeing our internal audit function and our external financial statement audits.
Your Board of Directors believes that adopting an audit committee will allow us to streamline elections processes, as well as ensure that our audit processes are aligned with business risks and objectives. This improvement should bring additional efficiency to your Credit Union without any impact to performance. Your Supervisory Committee supports this change, and with your approval will be continuing on in roles on the Board and Audit Committee.
Accordingly, NOTICE IS HEREBY GIVEN that the Board of Directors of PostCity Financial Credit Union is calling for a written mail vote by the members. The motion will be passed if at least 25 members vote, and at least a majority of the members voting approve the motion.
The motion being submitted for your vote is:
1. To adopt an Audit Committee in lieu of a Supervisory Committee.
2. If passed, to adopt the Board of Directors recommendation to amend Article VIII and other related sections of the PostCity Financial Credit Union Bylaws to establish an Audit Committee in lieu of a Supervisory Committee.
To be counted, your ballot must be submitted by September 25, 2020.