§ 7-108-106 — Staggered terms for directors

The articles of incorporation may
provide for staggering the terms of directors by dividing the total number of
directors into two or three groups, with each group containing one-half or one-third
of the total, as near as may be. In that event, the terms of directors in the first group
expire at the first annual shareholders' meeting after their election, the terms of
directors in the second group expire at the second annual shareholders' meeting
after their election, and the terms of directors in the third group, if any, expire at
the third annual shareholders' meeting after their election. Upon the expiration of
the initial staggered terms, directors shall be elected for terms of two years or
three years, as the case may be, to succeed those whose terms expire.

Legislative History

Source: L. 93: Entire article added, p. 779, � 1, effective July 1, 1994.