Is The SAFE Board "Courting" Disaster With The Mega-Me Merger?

                                The SAFE CU Board's "little red wagon"?

"Shareholders often bring breach of fiduciary duty suits in connection with Merger & Acquisition activities." 

 ✅  "The sale or merger of a company is a high stakes event for shareholders, management, and directors. 

✔  The role of the board is to seek an outcome that is the best available to the shareholders. 

✔  To meet the demands of this role, directors must fully understand what is required.

✔ Directors must deliberate and document fulfillment of the duties of: 

• (1) care, 
• (2) loyalty, 
• (3) and appropriate disclosure.

 ✅  "24% of all class action law suits include merger and acquisition related allegations."

  Lots of folks in Sacramento are gonna be "fixated" on the SAFE Board...

 

The SAFE Mega-Me Merger: Who Should DFPI Be Cheering For?

                     

❋ Cheerleader for the SAFE Board of Directors, or advocate for all SAFE members and guardian of the laws of California? 

✅ If you've been following this sad saga for a while you know that: The California Department of Financial Protection and Innovation (DFPI) has final decision authority on the the SAFE Credit Union Board's proposal to merge with Boeing Employees Credit Union of Washington State. But, you may have missed the key point!

✔ California law states that a majority of all SAFE members must vote in favor of the merger proposal for it to be approved.  If a majority of all 245,000  SAFE members do not vote in favor of merger, the merger is not approved!   [Got that?] 

✅ End of story? Not quite! Any final decision authority by DFPI occurs only after the legally required vote by all the members of SAFE CU.  DFPI does not approve a merger proposal in advance of a member vote, although the SAFE Board may seek to imply that it does. [Same sleight of hand SAFE used with that phrase "definitive agreement"!]

✔ So, DFPI by California law may overrule a vote of disapproval by the majority of SAFE members! 

😎 Can you think of any reason for DFPI to cheerlead on behalf of the SAFE Board over the objections of a majority - 122,500+ - of SAFE member-owners?

  Well, why not just ask DFPI now if it will overrule a SAFE member vote... and why?