Bill Text: CA SB918 | 2011-2012 | Regular Session | Chaptered

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Bill Title: Mutual water companies: boards of directors.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2011-07-15 - Chaptered by Secretary of State. Chapter 89, Statutes of 2011. [SB918 Detail]

Download: California-2011-SB918-Chaptered.html

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BILL NUMBER: SB 918	CHAPTERED
	BILL TEXT

	CHAPTER  89
	FILED WITH SECRETARY OF STATE  JULY 15, 2011
	APPROVED BY GOVERNOR  JULY 13, 2011
	PASSED THE SENATE  MAY 9, 2011
	PASSED THE ASSEMBLY  JULY 1, 2011
	AMENDED IN SENATE  APRIL 13, 2011

INTRODUCED BY   Senator Anderson

                        FEBRUARY 18, 2011

   An act to add Section 301.9 to the Corporations Code, relating to
mutual water companies.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 918, Anderson. Mutual water companies: boards of directors.
   Existing law provides for the formation and operation of general
corporations, and specifies that directors shall be elected to the
board of directors at each annual meeting of shareholders to serve
until the next annual meeting, except as provided for a publicly
listed corporation.
   This bill would provide that a mutual water company incorporated
as a general corporation may elect directors to staggered 4-year
terms and allow the initially elected directors to determine by lot
which of them shall instead serve a 2-year term, as specified. The
bill would require the mutual water company to notify its
shareholders, prior to the election, that the directors shall
determine their terms by lot.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 301.9 is added to the Corporations Code, to
read:
   301.9.  Notwithstanding Section 301, a mutual water company
organized under this division may elect directors to serve staggered
four-year terms if authorized in the corporation's articles of
incorporation or bylaws. Upon the initial election of directors to
staggered terms, the elected directors shall determine by lot who
among them shall serve initial two-year terms and who among them
shall serve four-year terms. Prior to any election in which the terms
of elected directors shall be determined by lot, the mutual water
company shall notify its shareholders that the terms of the directors
elected shall be determined among those directors by lot.