Navy Mutual has newly amended bylaws, as of March 10, 2008. The proposed bylaws were developed by the Board of Directors and submitted in January to our Non-Resident Directors, who voted overwhelmingly to adopt them.
It had been over a decade since Navy Mutual’s bylaws were substantially amended, and the environment in which Navy Mutual operates changed significantly since the Association was formed in 1879. The new bylaws give the Board and management greater flexibility in meeting the needs of our members by addressing the following important topics:
Scope of Membership: The new bylaws provide that, where permitted by law, Navy Mutual can admit to membership any current or past member of the Sea Services (including veterans) without regard to their service status. This change allows Navy Mutual to reach out to more Sea Service members, increasing our Membership and offering more individuals the opportunity to benefit from the unique services Navy Mutual provides.
Composition of Board: The current legal and regulatory environment makes it difficult for active-duty Sea Service members to serve on Navy Mutual’s Board. The new bylaws allow for between 12 and 18 Board members who are not on active duty. Active duty Board members can still be recruited, but this change gives the Nominating Committee considerably more flexibility in serving the needs of the Association.
Non-Resident Directors (“NRDs”): The new bylaws move the NRDs into a governance role, representing the Members to Navy Mutual by voting on bylaw amendments, responding to surveys, etc. We believe that this change will strengthen the relationship between the NRDs and the Association, enhancing the NRDs’ opportunities to influence Navy Mutual’s future course.
Indemnification: The new bylaws provide that Board members and staff acting in good faith on Navy Mutual’s behalf will be indemnified to the full extent of Navy Mutual’s assets.
Modernization and Clarification: The new bylaws have been modernized and clarified, with many of the details about how Navy Mutual’s assets are be valued and its plans administered moved to other documents. These new bylaws do not change Members’ substantive rights, but provide a more flexible framework for governance of the Association.
To download a copy of the new bylaws please visit the Member Services Center on our website.
