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Vermont Statutes Title 11 Sec. 804

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Terms Used In Vermont Statutes Title 11 Sec. 804

  • Board of directors: means the board of directors of a mutual benefit enterprise. See
  • Director: means a director of a mutual benefit enterprise. See
  • Member: means a person that is admitted as a patron member or investor member or both in a mutual benefit enterprise. See
  • Mutual benefit enterprise: means an enterprise organized under this title. See
  • Organic rules: means the articles of organization and bylaws of a mutual benefit enterprise. See

§ 804. Election of directors and composition of board

(a) Unless the organic rules require a greater number:

(1) the number of directors that shall be patron members may not be fewer than:

(A) one if there are two or three directors;

(B) two if there are four or five directors;

(C) three if there are six through eight directors; or

(D) one-third of the directors if there are at least nine directors; and

(2) a majority of the board of directors shall be elected exclusively by patron members.

(b) Unless the organic rules otherwise provide, if a mutual benefit enterprise has investor members, the directors who are not elected exclusively by patron members are elected by the investor members.

(c) Subject to subsection (a) of this section, the organic rules may provide for the election of all or a specified number of directors by one or more districts or classes of members.

(d) Subject to subsection (a) of this section, the organic rules may provide for the nomination or election of directors by districts or classes, directly or by district delegates.

(e) If a class of members consists of a single member, the organic rules may provide for the member to appoint a director or directors.

(f) Unless the organic rules otherwise provide, cumulative voting for directors is prohibited.

(g) Except as otherwise provided by the organic rules, subsection (e) of this section, or sections 303, 516, 517, and 809 of this title, member directors shall be elected at an annual members’ meeting. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)

Vermont Statutes Title 11 Sec. 804

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Terms Used In Vermont Statutes Title 11 Sec. 804

  • 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.
  • Personal property: All property that is not real property.

§ 804. Purpose for which incorporated

A professional corporation may be organized pursuant to the provisions of this chapter only for the purpose of rendering one specific type of professional service and services ancillary thereto and shall not engage in any other business than rendering the professional service which it was organized to render and services ancillary thereto; provided, however, that a professional corporation may own real and personal property necessary or appropriate for rendering the type of professional services which it was organized to render and may make such investment of its funds as is applicable for other corporations. (1963, No. 218, § 5, eff. July 3, 1963.)