CHARLES CITY, Iowa – Iowa state regulators on Tuesday notified disgruntled members of Family Community CU that their vote at Saturday’s annual meeting to remove the board and suspend the credit union’s CEO was invalid, ruling that the rare board ouster vote was not conducted properly.

In a letter sent to the $19 million credit union, JoAnn Johnson, Superintendent of CUs, said Saturday’s board ouster and CEO suspension were not in compliance with the bylaws of the credit union, or with the Iowa CU Act. Johnson said the actions which were undertaken at the end of the meeting did not follow the proper process.

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