Board of Director Responsibilities

Congratulations on being elected by your fellow members to serve on the board of directors of your credit union. As a board member, your primary responsibility is to provide the long-term strategic direction of the credit union and to work closely with the credit union’s President and CEO.

The role and responsibility of a credit union board of director is detailed in National Credit Union Act for Federally Chartered Credit Unions and in the Michigan Credit Union Act (MCUA) for State Chartered Credit Unions). Regardless of whether your credit union is state or federally chartered, the role of a board member will essentially be the same.

Board of director duties:

• Directors should have a genuine interest in their office, attend meetings regularly and keep well-informed about the affairs of their credit union and the credit union industry at all times.
• Directors should not lose sight of their primary responsibility, which is to protect the members and depositors who have placed their trust in them.
• Duty of care: prudent and diligent care in managing the affairs of others.
• Duty of loyalty: personal interests are secondary to the interest of the credit union and its membership.
• Duty of candor or disclosure: requires full disclosure of all facts which may impact the board’s decision. Relationships are also controlled through the institution’s bylaws.
• Directors should be capable of retaining confidences, as required under the MCUA, and refrain from divulging confidential information gained through their position.
• The director must be capable of evaluating facts, and free from prejudices or personal interest, in reaching sound, independent decisions.
• Directors should give undivided loyalty to their office and not engage in interests adverse to the credit union.
• Directors should possess the integrity not to use their office for personal benefits through information gained by virtue of their position.
• Directors should thoroughly understand their duties and responsibilities under the MCUA.^* 

^*MCUA 490.342(2) outlines the Board’s responsibility for maintaining the CU’s Safety and Soundness.
 MCUA 490.342 also outlines specific duties the Board must perform, and others they may perform or delegate to a manager.