# 12 CFR § 708a.106: Membership approval of a proposal to convert

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.106

## Section

- **Citation:** 12 CFR § 708a.106
- **Heading:** Membership approval of a proposal to convert
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 12—Banks and Banking > CHAPTER VII—NATIONAL CREDIT UNION ADMINISTRATION > SUBCHAPTER A—REGULATIONS AFFECTING CREDIT UNIONS > PART 708a—BANK CONVERSIONS AND MERGERS > Subpart A—Conversion of Insured Credit Unions to Mutual Savings Banks

## Text

(a) A proposal for conversion approved by a board of directors requires approval by a majority of the members who vote on the proposal.
(b) The board of directors must set a voting record date to determine member voting eligibility that is at least one day before the publication of notice required in § 708a.103.
(c) A member may vote on a proposal to convert in person at a special meeting held on the date set for the vote or by written ballot filed by the member. The vote on the conversion 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.
[71 FR 77167, Dec. 22, 2006. Redesignated at 75 FR 81386, Dec. 28, 2010, as amended at 84 FR 1607, Feb. 5, 2019]

## Nearby sections

- [12 CFR § 708a.101 § 708a.101 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.101.md)
- [12 CFR § 708a.102 § 708a.102 Authority to convert.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.102.md)
- [12 CFR § 708a.103 § 708a.103 Board of directors' approval and members' opportunity to comment.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.103.md)
- [12 CFR § 708a.104 § 708a.104 Disclosures and communications to members.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.104.md)
- [12 CFR § 708a.105 § 708a.105 Notice to NCUA.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.105.md)
- [12 CFR § 708a.106 § 708a.106 Membership approval of a proposal to convert.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.106.md)
- [12 CFR § 708a.107 § 708a.107 Certification of vote on conversion proposal.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.107.md)
- [12 CFR § 708a.108 § 708a.108 NCUA oversight of methods and procedures of membership vote.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.108.md)
- [12 CFR § 708a.109 § 708a.109 Other regulatory oversight of methods and procedures of membership vote.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.109.md)
- [12 CFR § 708a.110 § 708a.110 Completion of conversion.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.110.md)
- [12 CFR § 708a.111 § 708a.111 Limit on compensation of officials.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.111.md)
- [12 CFR § 708a.112 § 708a.112 Voting incentives.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.112.md)
- [12 CFR § 708a.113 § 708a.113 Voting guidelines.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.113.md)
- [12 CFR § 708a.301 § 708a.301 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.301.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-12-708a.106. Check the current official text before relying on it. Not legal advice.