Director Fiduciary Duties

Develop a policy addressing the fiduciary responsibilities of the board of directors. The board of directors is responsible for the general direction and control of the credit union, including the ability to:

• Carry out the duties of a director in good faith and in the best interests of the membership

• Administer the affairs of the credit union fairly, impartially, and without discrimination

• Direct management’s operations in conformity with the Federal Credit Union Act, NCUA’s regulations, other applicable law, and sound business practices

• Develop a working familiarity with basic finance and accounting practices, including the ability to read and understand the credit union’s balance sheet and income statement and to ask, as appropriate, substantive questions of management and the internal and external auditors within six months of appointment or election

The policy should also include training available to implement the objectives listed above. NCUA’s regulations § 701.4, General authorities and duties of Federal credit union directors, and Letter to Federal Credit Union 11-FCU-02, Duties of Federal Credit Union Boards of Directors, address directors’ fiduciary duties.

Last updated on March 30, 2026