Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; Cumulative Voting

Samenvatting

The Farm Credit Administration (FCA), through the FCA Board (Board), issues a final rule amending Sec. 615.5230 of its regulations to provide that a Farm Credit Bank (FCB or bank) may eliminate cumulative voting in director elections with the consent of 75 percent of the bank's association shareholders. This rule is necessary because the existing requirement of unanimous consent was unduly burdensome, complicated, and provided questionable benefits. The effect of this rule is to ease the unanimous consent requirement while maintaining significant protection for the minority interests.