Save our one-member-one-vote democracy!

 

First Basin is currently a democratic institution. As at all credit unions, governance is based on the American democratic principle of one-person, one-vote.  If First Basin becomes a bank, according to the board of directors itself, our democracy will be replaced by a system that gives people with larger account balances more say. (Depositors will be given one vote per $100 deposited.)

Bank rules could allow give directors effective control of First Basin. Directors plan to allow the use of “running proxies,” which allow member to give their right to vote over to the directors, which may give the directors a controlling share of votes. Why don’t they want members to retain real control over the institution?

Let’s keep our democracy! Vote no!

Claim: The board claims that given more control to wealthier depositors is the “typical” mutual savings bank method.
Fact: The board could have chosen to retain the one-member, one-vote method after conversion, as a number of recent converted credit unions have done. Why don’t they keep this method? Why don’t they tell us the board is choosing to reduce member democracy?

Claim: The board says that giving wealthier members more votes rewards “members that have made a greater contribution to the institution.”
Fact: Last we checked, it’s the borrowers of a financial institution who pay most of the bills, through interest on loans and fees. According to First Basin’s own financial reports, over 60% of revenue comes from loans, not deposits!

If the board really wanted to change charters to help members, why are they asking that we abandon our one-member, one-vote rule democracy? Why are they allowing “running proxies,” which could give the board total control of First Basin?