Article 4. Supervisory Committee of California Financial Code >> Division 5. >> Chapter 4. >> Article 4.
Every credit union shall have a supervisory committee of at
least three persons, each of whom shall be a member of the credit
The supervisory committee may:
(a) Suspend at any time by unanimous vote, at a meeting called for
that purpose, the credit committee, or any member thereof, or the
credit manager, or any member of the board of directors, or any
(b) By a majority vote call a meeting of the members to consider
any violation of this division or the bylaws, or any practices of the
credit union which, in the opinion of the committee, are unsafe or
(c) Inspect the securities, cash, and accounts of the credit
(d) Fill vacancies in the supervisory committee until the next
annual meeting of the members.
(e) Declare vacant any office of a member of the supervisory
committee if such member is absent from three consecutive regular
meetings of the supervisory committee unless excused therefrom or is
completely inactive as a member of the supervisory committee for a
consecutive 12 months' period.
The supervisory committee shall be responsible for
reviewing the credit union's policies and control procedures to
safeguard against fraud and self-dealing, and the supervisory
committee shall exercise whatever efforts are necessary pursuant to
Sections 14551 and 14553 to meet those responsibilities.
The supervisory committee shall, within seven days after
suspension of any or all members of the credit committee, or any
member of the board of directors, or any other officer, cause notice
of a special meeting to be given to the members to take such action
regarding the suspension as the members deem necessary.
(a) The supervisory committee shall at least once each year
make or cause to be made an audit of the books and records and an
examination of the business and affairs of the credit union. The
supervisory committee shall make a full report of the assets and
liabilities, receipts and disbursements of the credit union to the
board of directors. Those reports shall be presented at the annual
meeting of members and filed with the records of the credit union.
(b) The supervisory committee may make or cause to be made any
supplementary inspections of the securities, cash, and accounts of
the credit union or audits as it deems necessary, and submit reports
of those audits to the board of directors.
No member of the supervisory committee shall serve as a
member of the credit committee, as the credit manager, as a member of
the board of directors, or as an employee of the credit union.
The commissioner may, after investigation and finding that
the supervisory committee is not performing in conformance with this
article, declare all offices of the supervisory committee of a credit
union vacant and shall direct the board of directors of the credit
union to call a special meeting of the members for the purpose of
electing a new supervisory committee to serve until the next regular