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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
203
:
ORGANIZATION AND MANAGEMENT OF MUTUAL AND COOPERATIVE FINANCIAL INSTITUTIONS
Subchapter
004
:
GOVERNING BODY
§
13401. Directors: number, election, qualifications, and term
(a) The number
of directors on the governing body of a mutual or cooperative financial
institution may not be less than five, all of whom shall be residents of the
financial institution's geographic area or an area proximate to that geographic
area.
(b) The initial
governing body shall be elected at the first meeting of the corporators or the
organizers as provided for in section 13103 of this title, and the governing
body shall be elected by a vote of the corporators or members at each annual
meeting thereafter; provided that the organizational documents or internal
governance documents may provide for classification of directors in accordance
with Title 11 or 11A, depending on the form of organization.
(c) Vacancies on
the governing body occurring during the year may be filled by the governing
body until the next annual meeting of the corporators or members. A director so
elected shall fill such position for the remainder of the term. Any vacancy
which causes the number of directors to fall below the minimum required in
subsection (a) of this section or in the institution's internal governance
documents shall be filled promptly.
(d) The
compensation of directors, which may include provision for payment of medical,
surgical, and hospital expenses due to accident or illness in the same manner
as provided for officers and employees, may be fixed by the corporators or
members at any legal meeting thereof, or, subject to the written approval of the
Commissioner, such may be fixed by the governing body. (Added 1999, No. 153
(Adj. Sess.), § 2, eff. Jan. 1, 2001.)