# 12 C.F.R. § 708a.306 (2026): Membership approval of a proposal to merge

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_306

## Section

- **Citation:** 12 C.F.R. § 708a.306 (2026)
- **Heading:** Membership approval of a proposal to merge
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter VII: NATIONAL CREDIT UNION ADMINISTRATION / Part 708a: BANK CONVERSIONS AND MERGERS / Subpart C: Merger of Insured Credit Unions Into Banks / § 708a.306: § 708a.306   Membership approval of a proposal to merge.

## Text

(a) A proposal for merger approved by a board of directors also requires approval by a majority of the members who vote on the proposal. At least 20 percent of the members eligible to vote must participate in the vote. The credit union must also have NCUA's written authorization to proceed with the member vote.
(b) The board of directors must set a voting record date to determine member voting eligibility. The record date must be at least one day before the publication of notice required in § 708a.303.
(c) A member may vote on a proposal to merge in person at a special meeting held on the date set for the vote or by written ballot delivered by mail or otherwise. The vote on the merger proposal must be by secret ballot and conducted by an independent entity. The independent entity must be a company with experience in conducting corporate elections. No official or senior management official of the credit union or the immediate family members of any official or senior management official may have any ownership interest in or be employed by the independent entity.

## Nearby sections

- [12 C.F.R. § 708a.301 (2026) § 708a.301   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_301.md)
- [12 C.F.R. § 708a.302 (2026) § 708a.302   Authority to merge.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_302.md)
- [12 C.F.R. § 708a.303 (2026) § 708a.303   Board of directors' approval and members' opportunity to comment.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_303.md)
- [12 C.F.R. § 708a.304 (2026) § 708a.304   Notice to NCUA and request to proceed with member vote.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_304.md)
- [12 C.F.R. § 708a.305 (2026) § 708a.305   Disclosures and communications to members.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_305.md)
- [12 C.F.R. § 708a.306 (2026) § 708a.306   Membership approval of a proposal to merge.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_306.md)
- [12 C.F.R. § 708a.307 (2026) § 708a.307   Certification of vote on merger proposal.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_307.md)
- [12 C.F.R. § 708a.308 (2026) § 708a.308   NCUA approval of the merger.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_308.md)
- [12 C.F.R. § 708a.309 (2026) § 708a.309   Completion of merger.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_309.md)
- [12 C.F.R. § 708a.310 (2026) § 708a.310   Limits on compensation of officials.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_310.md)
- [12 C.F.R. § 708a.311 (2026) § 708a.311   Voting incentives.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_311.md)
- [12 C.F.R. § 708a.312 (2026) § 708a.312   Voting guidelines.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_312.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P708a_S708a_306. Check the current official text before relying on it. Not legal advice.