(11) Certificate of authority, when voided.
The certificate of authority shall be void after 90 days from its date, but the division may for cause, after a hearing, extend the life of such certificate for such time as the division deems advisable.
(12) Compensation for organizing prohibited. 215.40(12)(a)(a)
No person may directly or indirectly receive or contract to receive any commission, salary, compensation, bonus, rights or privileges for organizing the association, or for securing a subscription for the original savings accounts of the association.
This subsection does not prohibit an attorney from receiving reasonable compensation for legal services in connection therewith, after the association has been granted a certificate of incorporation.
Whoever violates this subsection shall forfeit to the state $1,000 for each violation, and in addition double the amount of the violator's commission, salary, compensation or bonus.
Within the time prescribed in sub. (11)
, the incorporators shall file with the division a certificate stating:
That articles of incorporation have been executed, filed with and approved by the division, and recorded; and
That the first meeting of members was held and that directors and officers were elected at such meeting; and
That bylaws were adopted at the first meeting of members and filed with and approved by the division; and
That the minimum number of required savers was obtained, and that said savers, in the aggregate, paid to the association the required initial amount of savings accounts; and
That funds, representing the initial amount of savings accounts, have been deposited in the association's designated depository bank; and
That the incorporators, in accordance with the requirement of sub. (6)
, paid to the association the moneys for an expense fund; and
That the moneys, representing the expense fund, have been deposited in the association's designated depository bank; and
That ground floor, independent office quarters have been obtained for the proposed association; and
That necessary action has been taken to obtain insurance of savings accounts from the deposit insurance corporation or other instrumentality approved by the division.
No business, other than that of completing the organization of the proposed association, may be transacted until such time as the division issues a certificate of incorporation to the association to commence business.
(14) Certificate of incorporation, when issued.
Upon receipt of the certificate of compliance from the incorporators, the division may within 30 days issue a certificate of incorporation to the association authorizing the association to commence business. The date appearing on the certificate of incorporation shall be the date of the corporate existence of the association.
(15) Fee for certificate of incorporation.
The incorporators shall pay to the division a fee of $50 for the certificate of incorporation, which sum shall be deposited into the general fund to the credit of the division.
(16) Certificate of incorporation, when voided.
Any association failing to commence business within one year from the date of the certificate of incorporation shall have its corporate existence terminated, and its articles of incorporation and certificate of incorporation shall be void.
(17) Discretionary authority.
The division shall have discretionary power in the granting of certificates of authority to incorporators desiring to organize such associations. The division may also refuse to issue certificates of incorporation to the incorporators to commence business when, in the division's opinion, the incorporators or any of them are not of such character and general fitness as to warrant belief that the association will be conducted for the best interest of its members; the location of the association is so close to an existing association that its business might be interfered with and the support of the new association would not be such as to assure its success; or when other good and sufficient reasons exist for such refusal.
(18) Appeal by applicants after being denied certificate of authority.
If the division refuses to grant a certificate of authority to organize an association, and the applicants feel aggrieved thereby, they may appeal to the review board to review the division's determination under s. 215.04 (1) (b)
See also ch. DFI-SL 18
, Wis. adm. code.
Articles of incorporation for mutual associations. 215.41(1)(1)
The articles of incorporation of a mutual association shall be approved by the division. The division shall, with the approval of the review board, promulgate rules governing articles of incorporation.
(2) Filing and approval.
Duplicate originals of the articles of incorporation executed by the incorporators, and any subsequent amendments thereto adopted by the members of the association, shall be filed with and approved by the division.
Upon their approval by the division, articles of incorporation and amendments thereto shall be recorded in the office of the register of deeds of the county in which the home office of the association is located.
(4) Amendment procedure.
Amendments to the articles of incorporation may be made at any annual or special meeting of the members duly called for that purpose, provided that a statement of the nature of the proposed amendment is included in the notice of meeting. The proposed amendment shall be adopted upon receiving the affirmative vote of a majority of the total eligible votes thereon, pursuant to s. 215.43 (4)
(5) Effective date.
The effective date of articles of incorporation and amendments thereto shall be the date when left for record in the office of the register of deeds. The register of deeds shall forward a certificate of recording to the division.
History: 1975 c. 359
; Stats. 1975 s. 215.41; 1979 c. 287
; 1983 a. 167
; 1991 a. 316
; 1995 a. 27
See also ss. DFI-SL 9.01
, Wis. adm. code.
Bylaws of mutual associations. 215.42(1)(1)
The bylaws of a mutual association shall be approved by the division. The division shall, with the approval of the review board, promulgate rules governing bylaws.
(2) Filings and approval.
Duplicate originals of the bylaws and any subsequent amendments thereto shall be filed with and approved by the division.
(3) Effective date.
The effective date of bylaws and amendments thereto shall be the date when approved by the division.
(4) Bylaws available to members.
Each association shall have its bylaws prepared in convenient form and upon request shall furnish a copy to any member.
(5) Amendments to bylaws.
The bylaws of the association may be amended as prescribed therein.
History: 1975 c. 359
; Stats. 1975 s. 215.42; 1983 a. 167
; 1991 a. 316
; 1995 a. 27
See also ch. DFI-SL 10
, Wis. adm. code.
Members and voting rights in a mutual association. 215.43(1)(1)
Who may become a member.
Any person, including but not limited to a partnership, corporation, fiduciary, association or federal agency, may become a member of any mutual association by owning a savings account in the association unless the savings account is evidenced by a negotiable certificate of deposit which is not in registered form. As of March 29, 1984, no person is a member of a state chartered mutual savings and loan association solely because the person has borrowed money from the association regardless of when the borrowing occurred.
(2) Ownership of savings accounts by minors.
With respect to any account created before July 1, 1975:
Minors under 14 years of age may own savings accounts held by a trustee or guardian.
Minors above the age of 14 years may own savings accounts, and shall then be subject to the same duties and liabilities as adult members. Payment for the withdrawal of savings accounts may, in the discretion of the board, be made to such minor, the parents or guardian, and the payments made on such withdrawals shall be valid, as well as payments on forfeited savings accounts or redeemed savings accounts.
(3) Meetings of members.
Annual and special meetings of members shall be held in accordance with the method prescribed in the bylaws.
Each saver in a mutual association shall have one vote for each $100 or additional fraction of $100 of the withdrawal value of each of the saver's savings accounts as they appear on the books of the association at the end of a day determined by the board which shall be not more than 60 days preceding the first day of a meeting at which a vote is taken.
At any meeting of members, voting may be in person or by proxy. Every proxy shall be in writing and signed by the member or the member's duly authorized attorney in fact.
If a member appears at a meeting, the member's proxy shall be void for that meeting.
Any proxy, when filed with the secretary, shall, unless otherwise specified in the proxy, continue in force from year to year until revoked by a written notice delivered to the secretary or until superseded by subsequent proxies.
(5) Termination of membership.
Any member who has made a request for the withdrawal of the member's savings account remains a member and has all rights, privileges and duties of a member, until the withdrawal value of the savings account is paid.
Directors of a mutual association. 215.50(1)(1)
The government and management of a mutual association shall be vested in a board of directors, who are charged with the responsibility of compliance with this chapter, orders of the division, rules of the division promulgated under ch. 227
, the articles of incorporation and bylaws of the association, and other laws applicable to savings and loan operations.
(2) Qualifications of directors and composition of the board. 215.50(2)(a)(a)
To qualify as a director of a mutual association, a member must have a savings account in the association, the withdrawal value of which is at least $500. A director automatically ceases to be a director when the withdrawal value of his or her savings account is less than $500.
At least two-thirds of the directors shall reside in this state.
(3) Number of directors.
The board of directors shall consist of such number as designated in the bylaws.
(4) Election of directors.
The directors shall be elected by the members in accordance with the bylaws.
(5) Vacancy on board of directors.
Any vacancy on the board of directors may be filled by the majority vote of the remaining directors in accordance with the bylaws.
(6) Oath of directors.
Upon election, every director shall take and subscribe an oath that the director will diligently and honestly perform the duties of such office and will not knowingly violate or willingly permit to be violated this chapter, any rule of the division, the articles of incorporation or bylaws under which the association operates, or any other law applicable to savings and loan operations.
(7) Directors to fix compensation.
The compensation of officers, directors, employees and committee members shall be fixed by a majority vote of the board of directors in accordance with the bylaws. In addition, the board of directors may, by resolution, create a fund or join a pension system or enter into deferred compensation agreements for the retirement of its directors, officers and employees, subject to specific, prior approval of the division.
(8) May establish executive committee.
The board of directors may appoint and remove, by resolution, an executive committee, the members of which shall be directors, and which committee shall have the power of the board when not in session.
The board of directors shall hold regular or special meetings in accordance with the bylaws.
Unless the articles of incorporation or bylaws provide otherwise, the board may permit any or all directors to participate in a regular or special meeting or in a committee meeting, including an executive committee meeting, of the board by, or to conduct the meeting through the use of, any means of communication by which any of the following occurs:
All participating directors may simultaneously hear each other during the meeting.
All communication during the meeting is immediately transmitted to each participating director, and each participating director is able to immediately send messages to all other participating directors.
If a meeting will be conducted through the use of any means described in par. (b)
, all participating directors shall be informed that a meeting is taking place at which official business may be transacted. A director participating in a meeting by any means described in par. (b)
is deemed to be present in person at the meeting. If requested by a director, minutes of the meeting shall be prepared and distributed to each director.
(10) Promulgation of rules.
The board of directors, may by resolution, adopt rules and regulations for the conduct of business, provided that they are consistent with this chapter, the rules of the division, and the association's articles of incorporation and bylaws.
The board may remove a director who violates this chapter, the rules of the division, the articles of incorporation, the bylaws, orders of the division or any other law applicable to savings and loan operations. The board may remove a director only after affording the director a hearing.
The board may remove any officer of the association who is elected or appointed by the board whenever in its judgment removal is in the best interest of the association.
Officers of a mutual association. 215.51(1)(a)(a)
The general officers of a mutual association shall be:
Such other officers as the directors by resolution designate.
(2) When elected.
Immediately following each annual meeting of members, the directors shall convene and elect general officers for the ensuing year, in accordance with the bylaws.
(3) Duties of officers.
The officers shall, in addition to the duties and functions prescribed in the articles of incorporation and the bylaws, perform such other duties as are delegated by the directors.
(4) Filling vacancies.
Whenever any vacancy occurs in any general office, the directors shall, as soon as practicable, fill such vacancy by an election for the then unexpired term.
History: 1975 c. 359
; Stats. 1975 s. 215.51; 1983 a. 167