§ 20.5 — Appointment of associate directors

Illinois § 20.5

• Jurisdiction: Illinois
• Topic: REGULATION
• Ch. 205: FINANCIAL REGULATION
• Act 205 ILCS 305/: Illinois Credit Union Act.

Text

(a) The board of directors of a credit union may, in its discretion, appoint one or more associate directors to serve in an advisory capacity. The board shall prescribe the duties of an associate director and the manner in which associate directors are appointed and removed. The board shall not delegate to associate directors any of the duties or responsibilities prescribed by this Act or other applicable law to be performed by directors duly elected by their members. An associate director shall not be deemed or considered to be a director for any purpose under this Act. (b) Before appointing an associate director, the board shall confirm that the person meets all of the requirements to serve as a director, including, without limitation, a working familiarity with the financial and accounting practices of the credit union as set forth in subsection (c) of Section 30. (c) An associate director may participate in meetings of the board but may not vote or otherwise act as a director. With respect to any issue that comes before the board for deliberation, the board may request that all associate directors excuse themselves from the meeting of the board and the associate directors shall immediately comply with the request. (d) The board shall require each associate director to sign a confidentiality or non-disclosure agreement to ensure that information concerning the credit union remains confidential.

Legislative History

(Source: P.A. 102-496, eff. 8-20-21.)