Delaware Code Title 22 Sec. 1304 – Contract
Any contract establishing an electric company under this chapter shall specify:
(1) The name and purpose of the company and the functions or services to be provided by the company. The name may refer to the company as an agency, authority, company, corporation, group, system or other descriptive title.
(2) The establishment and organization of a governing body of the company which shall be a board of directors in which all powers of the company are vested. The contract may provide for the creation by the board of an executive committee of the board to which the powers and duties may be delegated as the board shall specify.
(3) The number of directors, the manner of their appointment, terms of office and compensation, if any, and the procedure for filling vacancies on the board. Each contracting municipality shall have the power to appoint 1 member to the board of directors and shall be entitled to remove that member at will.
(4) The manner of selection of the officers of the company and their duties.
(5) The voting requirements for action by the board; but, unless specifically provided otherwise, a majority of directors shall constitute a quorum and a majority of the quorum shall be necessary for any action taken by the board.
(6) The duties of the board which shall include the obligation to comply or to cause compliance with this chapter and the laws of the State and, in addition, with each and every term, provision and covenant in the contract creating the company on its part to be kept or performed.
(7) The manner in which additional municipalities may become parties to the contract by amendment.
(8) Provisions for the disposition, division or distribution of any property or assets of the company on dissolution.
(9) The term of the contract, which may be a definite period or until rescinded or terminated, and the method, if any, by which the contract may be rescinded or terminated, but that the contract may not be rescinded or terminated so long as the company has bonds outstanding, unless provision for full payment of such bonds, by escrow or otherwise, has been made pursuant to the terms of the bonds or the resolution, trust indenture or security instrument securing the bonds.
Terms Used In Delaware Code Title 22 Sec. 1304
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bonds: means any bonds, interim certificates, notes, debentures or other obligations of a company issued under this chapter. See Delaware Code Title 22 Sec. 1302
- Contract: A legal written agreement that becomes binding when signed.
- Contracting municipality: means a municipality which contracts to establish an electric company under this chapter. See Delaware Code Title 22 Sec. 1302
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Quorum: The number of legislators that must be present to do business.
- State: means the State of Delaware; and when applied to different parts of the United States, it includes the District of Columbia and the several territories and possessions of the United States. See Delaware Code Title 1 Sec. 302