40-1201. Authority for formation; directors and officers; elections.
40-1201
40-1201. Authority for formation; directors andofficers; elections.(a) Any number of persons, not less than 20, amajority of whomshall becitizens of this state, by complying with the provisions of this code, maybecome a body corporate for the purpose of carrying on the business ofmutual insurance as herein provided.
(b) The affairs of any such mutual insurance company, now existing orhereafter organized under the laws of this state, shall be managed by a boardof not more than 25 nor less than five directors. Any vacancy in the boardshall be filled by the remaining members until the next annual meeting of thepolicyholders, at which time a successor shall be elected to fill the unexpiredterm.
(c) Unless written balloting is required by the bylaws, directors shall beelected by voice vote. Each person who is a policyholder shall be entitled toone vote. A policyholder may vote by proxy, signed by the person legallyentitled to vote such proxy.
(d) A majority of the total number of directors shall constitute a quorum forthe transaction of business.
(e) Every such mutual insurance company, now existing or hereafter organizedunder the laws of this state, shall have such officers with such titles andduties as shall be stated in the bylaws or in a resolution of the board ofdirectors which is not inconsistent with the bylaws. Officers shall be chosenin such manner and shall hold their offices for such terms as are prescribed bythe bylaws or determined by the board of directors or other governing body.
History: L. 1927, ch. 231, 40-1201;L. 2007, ch. 30, § 4; July 1.