§ 501A.703 — Election of directors

Iowa § 501A.703

• Jurisdiction: Iowa
• Title XII: BUSINESS ENTITIES
• Ch. 501A: COOPERATIVE ASSOCIATIONS ACT

Text

1. First board. The organizers shall elect and obtain the acknowledgment of the first
board to serve until directors are elected by members. Until election by members, the first
board shall appoint directors to fill any vacancies.
2. Generally.
21 COOPERATIVE ASSOCIATIONS ACT, §501A.703
a. Directors shall be elected for the term, at the time, and in the manner provided in this
section and the bylaws.
b. A majority of the directors shall be members and a majority of the directors shall be
elected exclusively by the members holding patron membership interests unless otherwise
provided in the articles or bylaws.
c. The voting power of the directors may be allocated according to equity classifications
or allocation units of the cooperative. If the cooperative authorizes nonpatron membership
interests, one of the following must apply:
(1) At least one-half of the voting power on matters of the cooperative that are not
specific to equity classifications or allocation units shall be allocated to the directors elected
by members holding patron membership interests.
(2) The directors elected by the members holding patron membership interests shall have
at least an equal voting power or shall not have a minority voting power on general matters
of the cooperative that are not specific to equity classifications or allocation units.
d. A director holds office for the term the director was elected and until a successor is
elected and has qualified, or until the earlier death, resignation, removal, or disqualification
of the director.
e. Theexpirationofadirector’stermwithorwithoutelectionofaqualifiedsuccessordoes
not make the prior or subsequent acts of the director or the board void or voidable.
f. Subject to any limitation in the articles or bylaws, the board may set the compensation
of directors.
g. Directors may be divided into or designated and elected by class or other distinction as
provided in the articles or bylaws.
h. A director may resign by giving written notice to the chairperson of the board or
the board. The resignation is effective without acceptance when the notice is given to the
chairperson of the board or the board unless a later effective time is specified in the notice.
3. Election at regular meeting. Directors shall be elected at the regular members’
meeting for the terms of office prescribed in the bylaws. Except for directors elected at
district meetings or special meetings to fill a vacancy, all directors shall be elected at the
regular members’ meeting. There shall be no cumulative voting for directors except as
provided in this chapter and the articles or bylaws.
4. Districtorlocalunitelectionofdirectors. Foracooperativewithdistrictsorotherunits,
membersmayelectdirectorsonadistrictorunitbasisifprovidedinthebylaws. Thedirectors
may be nominated or elected at district meetings if provided in the bylaws. Directors who are
nominated at district meetings shall be elected at the annual regular members’ meeting by
vote of the entire membership, unless the bylaws provide that directors who are nominated
at district meetings are to be elected by vote of the members of the district, at the district
meeting or the annual regular members’ meeting.
5. Vote by ballot or alternative voting method. The following shall apply to voting by
ballot or alternative voting method:
a. A member shall not vote for a director other than by being present at a meeting, by
mail ballot, or by alternative voting method, as authorized by the board.
b. The ballot shall be in a form prescribed by the board.
c. The member shall mark the ballot for the candidate chosen and mail the ballot to the
cooperative in a sealed plain envelope inside another envelope bearing the member’s name,
orthemembershallvotebydesignatingthecandidatechosenbyanalternativevotingmethod
in the manner prescribed by the board.
d. If the ballot of the member is received by the cooperative on or before the date of the
regular members’ meeting or as otherwise prescribed for an alternative voting method, the
ballot or alternative voting method shall be accepted and counted as the vote of the absent
member.
6. Business entity members may nominate persons for director. If a member of a
cooperative is not a natural person, and the bylaws do not provide otherwise, the member
may appoint or elect one or more natural persons to be eligible for election as a director.
7. Term. Adirectorholdsofficeforthetermthedirectorwaselectedanduntilasuccessor
§501A.703, COOPERATIVE ASSOCIATIONS ACT 22
is elected and has qualified, or the earlier death, resignation, removal, or disqualification of
the director.
8. Acts not void or voidable. The expiration of a director’s term with or without the
election of a qualified successor does not make prior or subsequent acts of the director void
or voidable.
9. Compensation. Subject to any limitation in the articles or bylaws, the board may fix
the compensation of the directors.
10. Classification. Directors may be divided into classes as provided in the articles or
bylaws.