The Minor Vote

Election season is here. We can’t avoid the political commercials which remind us that EVERY VOTE COUNTS. It could be said that voting in presidential elections is just as important as voting in Federal Credit Union elections. But it got me thinking. Do all members of an FCU have an inherent right to vote, such as most adult citizens in the US election?

Are children able to vote in FCU elections? Well, research suggests that it depends on what the credit union has in its bylaws. State-chartered credit unions may have varying rules concerning this issue.

Fundamentally, it appears that if a minor is a member of an FCU, then the minor is entitled to vote and hold a share account. It appears to align with this NCUA legal opinion letter, which explains how voting is a fundamental right of all credit union members:

“The Federal Credit Union Act (FCU Act) grants all members two basic rights: the right to maintain a share account and the right to vote at annual meetings. 12 U.S.C. §§1759, 1769. These rights cannot be suspended or terminated without following the process for expelling a member in the FCU Act. 12 U.S.C. §1764. Nothing in the FCU Act or the National Credit Union Administration's (NCUA) regulations, however, precludes an FCU from restricting the availability of certain services to members, provided the FCU has a rational basis for doing so and member have notice of the policy.” (Emphasis added.)

FCUs members are responsible for selecting a federal credit union’s board of directors (BOD). Individually, members have only one vote despite the number of shares held at the federal credit union. This ensures every member has a say in the overall direction of the credit union. If members do not like the direction the credit union is going, they can speak with their vote at the next annual election. Article II of the model bylaws outlines the basic qualifications for membership in federal credit unions.

Membership requirements in FCUs for minors are slightly more stringent than that of adult members as illustrated in this FAQ (member-only). First, state law must allow minors to contract with the credit union. Second, the minor must be within the federal credit union’s field of membership, as stated in Section 5 of its charter, and possibly pay an entrance fee. And finally, the minor must pay the par value amount required for membership.

The minimum age requirement impacting most US elections can affect FCU elections, as well. NCUA opined that the BOD can set a minimum age requirement for voting in elections. The language is found in the model bylaws (Article V, section 7):

“The credit union may select the following option:

Section 7. Members must be at least ________years of age by the date of the meeting in order to vote at meetings of the members, sign nominating petitions, or sign petitions requesting special meetings. Members must be at least ________ years of age to hold elective or appointive office.”

In conclusion, if a minor is permitted by state law to hold an account with an FCU, which under the FCU ACT may permit the minor to hold shares, the minor can vote in elections, UNLESS the board of directors establishes a minimum age requirement within the bylaws. Any minor wishing to vote must be older than the required minimum age listed in the bylaws, if any, to vote in FCU elections.

Feel free to reach out to our Compliance Team at compliance@americascreditunions.org, if you have any questions concerning this topic.

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Board and Governance
Federal Regulatory Compliance Counsel
America's Credit Unions