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OCC okays bank meetings via phone and electronic participation
The OCC has issued Bulletin 2020-55 announcing an interim final rule that amends 12 CFR parts 5 and 7 to clarify that national banks and federal savings associations may permit telephonic and electronic participation at all board of directors, shareholder, and, as applicable, member meetings. The interim final rule, published at 85 FR 31943, is effective May 28, 2020, and:
- permits banks to provide for telephonic or electronic participation of members and shareholders, as applicable, at both annual and special meetings.
- requires banks that permit telephonic and electronic participation at member or shareholder meetings to have procedures for this remote participation and provides banks with a choice of procedures to follow based on elected state corporate governance procedures, the Delaware General Corporation Law, or the Model Business Corporation Act.
- codifies an OCC interpretation that permits national banks to provide for telephonic or electronic participation at board of directors meetings.
- updates OCC rules to clarify that all federal savings associations may provide for telephonic or electronic participation at board of directors meetings.
The amendments made by the interim final rule are permanent and will not expire after the COVID-19 emergency has ended. Comments on the rule are due by July 13, 2020.