SECU Legalease: "The No Formal Resolution Resolution"!

   First, there was the "no formal proposal proposal"; 

✅ Re: "The SECU Annual Membership Meeting - 2025: "Curiouser and Curiouser!"" [see post link here]    

Q: How does an SECU member present a resolution to the Board of Directors?

😎 "The Fine Print" response from the Chief Legaler: [link to legible version]

 

😎   Ms. Plaut, CLO, quote: "To date, SECU has not promulgated rules and procedures further detailing this process, but your request seems to suggest we should. We will give that idea due consideration." [see letter above, paragraph 5]

😎 The Bottom Line: No rules, no procedures exist...  just kinda made all this up!

 

  ... and so now, "the no formal resolution resolution"!  "Curiouser and..."

 

 

SECU Annual Meeting: Intimidating Questions?

 

  ★★  Anonymous September 1, 2025 at 7:05 PM

     Can you elaborate on how this is intimidating? 

 ✅ Four thoughts on that...

1) Employees may be reluctant to submit questions of concern. The fear of retribution by employees - whether real or not - is typical in most businesses.

2) As you've noticed at the national level, retribution is real (by both political parties!) and has become a hard-edged, take no prisoners war.

3) No one believes that the names attached to questions will remain anonymous.

4) The anonymice of "Social Media" (pictured above!) can be both vicious and vindictive, unconstrained by the truth or and need for accuracy.

😎 Why would an SECU member risk "putting themselves in play"? 

Anyway, why is it necessary?

 

 

SECU Annual Membership Meeting - Questionable?

   ... of a peculiar sort!

✅ Anonymous September 1, 2025 at 10:00 AM How do we submit a question?

❋ PRE-REGISTRATION AND QUESTION SUBMISSION
In order to ensure that SECU has arranged adequate space for the Annual Meeting attendees, we ask that all members register in advance by visiting https://www.ncsecu.org/about-us/corporate- information/governance#governance-updates. Members may submit questions for the question- and-answer session as part of the registration process. We look forward to seeing you there.

It is interesting that in order to ask a question of the Board of Directors, a member must pre-register and identify themselves. The reason given for the required pre-registration is "to ensure SECU has arranged adequate space for the Annual Meeting attendees."

Attendees, as you know, will not be permitted speak nor ask any questions at the 2025 Annual Meeting. The live stream is view only, not interactive. No election activity, no resolutions, no follow-up questions or suggestions.

😎  Why would you as a member drive to Greensboro to listen to our CEO, Ms. Leigh Brady, read out prepared answers to pre-screened questions for an hour? Couldn't SECU just post the answers on the website and save everybody an hour?

"When you kill time, it has no resurrection."

The SECU Board Of Directors' Definition of Free Speech.....

     Fair game?

The notice and procedures for the SECU Annual Meeting [link for full info} have been published.

😎 Be sure to look at this one:  "Rule 4. Up to one hour will be set aside during the meeting for a question-and-answer session. Members must submit any questions in advance of the meeting. To permit as many members to ask questions as possible, we ask that you limit yourself to one question or topic." 

"Members will be requested to provide us their name and city of residence. We intend to answer as many questions as time allows. If we receive multiple questions on the same topic, we may group them together and respond to them collectively. If there are questions that we are unable to answer during the question-and-answer session and are of general interest to members, we will post a summary on our website after the meeting."

"While we welcome member questions, we will not address questions that (i) are not relevant to SECU, (ii) contain offensive or otherwise inappropriate language, derogatory references to individuals, or that otherwise are in bad taste, (iii) relate to pending or threatened litigation, (iv) are repetitious of questions asked by others, (v) relate to personal matters, such as individual employee relation matters or individual member account issues, or (vi) are otherwise determined by the Chair to be inappropriate or otherwise not suitable for response during the Annual Meeting."

 ✅ The SECU Board of Directors tend to think of themselves as open-minded and supportive of free speech. But this rule and other recent examples show otherwise—and prove that the Board as a group is not above using intimidation and harassment to silence dissenting voices. 

😎 In the long run, it's hard to hide one's true colors. The SECU Board seems to be tending increasingly toward dress khaki...

 

  Q&A redefined...

SECU Annual Meeting Notice Now Available... Still No Answer on Resolution

  ...Also at ncsecu.org

✅  " In preparation for the SECU Annual Meeting scheduled for October 14, 2025, we are pleased to share the Annual Meeting Notice, which includes our Nominating Committee Letter that was originally distributed July 11, 2025 and the Candidates’ Statement of Background. All information is posted on our website and in SECU branches.

• Annual Meeting Notice: This document outlines the details of our upcoming Annual Meeting, including the date, time, location, agenda, and rules.
• Nominating Committee Letter: This letter provides the SECU Board of Directors Nominating Committee selections for candidates seeking election to the Board. These nominations are the result of a thorough evaluation process for each candidate, identifying individuals who are eligible for membership on the Board of Directors and evaluating multiple other factors, including the merits of the candidates by way of their education, character, professional, board and volunteer experience, as well as their knowledge of the Credit Union, demonstrated commitment to the needs of members, and capacity and capability to be an effective addition to the current composition of the SECU Board of Directors.
• Candidates’ Statement of Background: This document shares relevant background information provided by each nominated candidate, including their occupation, education, board and volunteer experience, and membership tenure.

This year, four board seats are up for election. No applications for self-nomination were received. With only one candidate for each open seat, the nominees shall be declared elected by acclamation in accordance with the Bylaws of SECU. There will not be absentee voting or in-person voting at the Annual Meeting.

A livestream of the Annual Meeting will be available on the website. Registration to attend the meeting in person is available here. Thank you for being a valued member of SECU! "

 ✅ Still no response on resolutions! [link]

 

😎 “Have you guessed the riddle yet?” the Hatter said,

Alice: “No, I give it up, what’s the answer?” 

“I haven’t the slightest idea,” said the Hatter.

 

  Alice: 'Well, I never heard it before, but it sounds uncommon nonsense.”

The SECU Annual Membership Meeting - 2025: "Curiouser and Curiouser!"

 

  “The proper order of things is often a mystery to me.”                                                                                                                             - The Cheshire Cat

Ms. Cathy Plaut, SECU Chief Legal Officer

CATHY.PLAUT@ncsecu.org

 

August 25, 2025

 

Re: SECU Member Resolutions - 2025

Dear Ms. Plaut,

Thank you for your prompt response [link] to my August 15, 2025 inquiry [link] concerning the presentation of SECU member resolutions to the SECU Board of Directors.  

I had hoped that specifically limiting resolutions to SECU governance issues would appropriately narrow the focus and scope of discussion. And, that the submission of resolutions well in advance would fairly enable all SECU members to review and consider the issues. It has historically been standard practice for all credit unions to include such discussions as part of their annual membership meetings. 

Wish to clarify your statement that member resolutions had not been allowed at "recent"' annual meetings is not fully accurate. SECU members were invited to fully participate in the annual membership meeting from 1937 through 2022.

Member resolutions from the floor were first prohibited only in 2023 and SECU members were prohibited from speaking at the annual meeting for the first time in 2024 - just nine months ago!

SECU members have not been prohibited from submitting resolutions prior to the annual membership meeting, until your ruling in your latest response of August 20, 2025.  SECU members may not now actively participate in any fashion at the 2025 annual meeting.

From your letter, it appears that you believe that the SECU bylaws permit member resolutions only through the calling of a "Special Membership Meeting". That is certainly a novel idea, perhaps unique to SECU; and certainly appears to erect new, substantial barriers for the membership.

But, again your response and clarification are appreciated. If a "Special Meeting" is the approved method, would you please send me a copy of your established rules and procedures for calling such a "Special Meeting". 

Thank you. Look forward to receiving those guidelines and procedures promptly.

Sincerely,

Jim Blaine, SECU Member

cc

Leigh.Brady@ncsecu.org

kristina.ray@nccud.nc.gov

 

... Ask Alice?

 

 

 

SECU Board Election Procedures - Still Making News In North Carolina

   A Boogie Board?

BusinessNC  [link]  readers are evidently not yet bored with board election antics at SECU. 

This latest article provides an across-the-board recap of SECU's on-boarding process for 2025. Critiqued for less than bulletin board transparency in the nominating process, SECU continues to claim all procedures were above board and handled strictly by the board.

SECU didn't really go overboard with clarity, as several responses appeared to be all over the board. Asked about the number of board applicants for 2025, the "no comment" response seemed stiff as a board. 

The Chairman of the Nominating Committee, Mr. Chuck Stone, seemed to confirm independently, that beyond the 4 recruited candidates, only one other SECU member sought to be interviewed. 1 out of 2.8 million members isn't exactly an "all aboard" shout out.

"Asked about meeting procedures, a spokeswoman said details about the format will be published on Aug. 29."; but confirmed that members' ability to speak will continue to be boarded up at the 2025 Annual Meeting. 

Guess members can try checkers or chess while the other details get ironed out... "You'll know what you need to know when you know it."

  Now, back to the drawing board...

2025 SECU Board Candidates Announced - Two Incumbents Stepping Down.

   An "illiberal democracy"?

The SECU Nominating Committee has announced the slate for 2025.  Chris Ayers, Nneamaka "Amaka" Flynn,  Ben McLawhorn, Thomas Parrish. Two incumbents are stepping down.

Mr. McLawhorn and Mr. Ayers (famous when chair in 2023 for the "no formal proposal proposal") are incumbents. Mr. Parrish is a former board member, "un-elected" in 2023 and Ms. Flynn is a long-time advisory board member. 

In contrast to the absence of direct notice of changes in this year's election procedures, the candidates were announced broadly by email to the SECU membership.

The email stated: "The Nominating Committee is encouraged by the level of candidate engagement and participation in this year’s election."  

Other than these four nominees, recruited by the SECU Board, would you like to guess how many other members - out of 2.8 million SECU members - submitted nomination packages to the Committee?

Commenters have asked: 1) "Can a member self-nominate now?" No, a candidate must apply through the nominating committee.  This was challenged in 2023 as not in accordance with the SECU bylaws; the Administrator of Credit Unions said the Board may do as it pleases; 2) "There wasn't proper notice of election procedure changes." This was challenged in 2025; the Administrator of Credit Unions said the Board may do as it pleases.

The Nominating Committee did note: "As members, your active participation in our democratic process is crucial to SECU's success."

  Should be a memorable Annual Membership Meeting!

 

SECU What's Next? Isn't This A Losing Struggle?

   Absolutely!

The SECU members are losing:

✅ At the SECU Annual Meeting: 

 Recent Year     Member May Speak     Member Resolutions

       2022                  Fully Permitted             Fully Permitted

       2023                     Restricted                     Restricted

       2024                     Prohibited                    Restricted

       2025                     Prohibited                    Prohibited 

✅ Still to Come for SECU Members?: 

The Threat of Mergers, Malfeasance, and Bank Conversions! [link]. 

But there has been some progress, so stick with it a while longer if you can.

Victory is usually temporary, failure is rarely final, but...

"Don't it always seem to go..." [link]

 

All a bit Sisyphean? ... yes!

SECU What's Next? Quick Review: Then Get Ready For Next Round With The Regulator...

  

Just joking? "Covenant": An agreement, an understanding, a contract between people.

How did  SECU and the SECU membership arrive at this point?

 ✅ Baseline. Prior to September, 2021, SECU had an uninterrupted 85-year record of growth in assets and membership, un-besmirched by sanction nor scandal.

 ✅ Timeline.  🔺September, 2021 "New/New" arrives at SECU. 🔺Yearlong, 2022 Chaos Ensues. 🔺October, 2022  Annual meeting resolution [link]. 🔺November/December, 2022  Fireside Chats.  🔺March, 2023  H.410 - Push for open membership/commercialization [link] . 🔺April, 2023 Board election rules - independent nomination prohibited. 🔺June, 2023 CEO Exits [link]. 🔺July, 2023 By-law amendments - cover of midnight. 🔺October, 2023 Annual Meeting - Contested election, incumbents out - 15,000 vote.  🔺January, 2024  Financials - Most "profitable year ever", member deposits plunge [link]. 🔺April, 2024  Annual Meeting limits - members no longer may speak. 🔺July 2024  H410 fails. 🔺October, 2024 Annual Meeting - incumbents prevail, 100,000+ members vote.  🔺December, 2024 Financials - Soaring Budget/Delinquency/Charge-offs.  🔺March, 2025 - H187 - the "new" H410 introduced. [link] 🔺 May, 2025 -  Member annual meeting resolution procedures request - do not exist, no longer allowed. 🔺 June, 2025 - Administrator of Credit Unions rules SECU Board may alter Election Procedures at will.  🔺 July, 2025 - NCCUD affirms authority over bylaws [link].

  Next up:  "May, 2025 -  Member annual meeting resolution procedures request - do not exist, no longer allowed."

You'll note that  the North Carolina Credit Union Division affirmed its authority to enforce credit union compliance with its bylaws [link] last week.

In response to a member request, a May 19, 2025 letter [link]* seems to indicate that the SECU Board believe they may "change the rules of the Annual Meeting" willy-nilly. 

(❋ According to Ms. Plaut:  " ... the rules for recent Annual Meetings have permitted members the opportunity to speak or submit questions - but there was no process to allow members to introduce resolutions for consideration at the Annual Meeting.")

That does not appear to be a true statement...

... and that attitude does not appear to be in keeping with "the foundation documents" - the organizational charter, the by-laws, nor the statutory requirements - of SECU as a member-owned cooperative. 

More tomorrow...