The affairs of the association shall be managed by a board of not less than three directors who are elected by the members or stockholders.
Cannabis Cooperative AssociationsDirectors and Management
Section § 26226
This law states that the management of an association's activities or affairs must be handled by a board consisting of at least three directors. These directors are chosen by the association's members or its stockholders through an election process.
association management board of directors three directors minimum
Section § 26226.1
This section allows an association's bylaws to divide its area into different districts for the purpose of electing directors. The bylaws should also indicate how many directors will be elected from each district and describe how the districts and director positions can be adjusted over time.
The bylaws may provide that the territory in which the association has members shall be divided into districts and that directors shall be elected from the several districts. If the bylaws divides the territory into districts for the election of directors, the bylaws shall specify the number of directors to be elected by each district and the manner and method of reapportioning the directors and of redistricting the territory covered by the association.
bylaws districts directors
Section § 26226.2
This law allows an organization's bylaws to include rules for holding primary elections to nominate directors. If members are grouped into districts, the bylaws can also state that each district's primary election results are final and must be approved during the annual meeting.
The bylaws may provide that primary elections shall be held to nominate directors. If the bylaws provide that the territory in which the association has members shall be divided into districts, the bylaws may also provide that the results of the primary elections in the various districts shall be final and shall be ratified at the annual meeting of the association.
primary elections nominate directors bylaws
Section § 26226.3
This law section allows an association's bylaws to divide its territory into districts for electing board directors. Members or stockholders in these districts can choose representatives or advisers who, in turn, elect the directors. The bylaws must clearly outline how many representatives or advisers each district elects and detail the process for changing district boundaries and redistributing representatives.
The bylaws may provide that the territory in which the association has members shall be divided into districts, and that the directors shall be elected by representatives or advisers, who themselves have been elected by the members or stockholders from the several territorial districts. If the bylaws divide the territory into districts for the election of representatives or advisers who elect the directors, the bylaws shall specify the number of representatives or advisers to be elected by each district and the manner and method of reapportioning the representatives or advisers and of redistricting the territory that is covered by the association.
bylaws territorial districts directors election
Section § 26226.4
This law allows an organization's bylaws to specify that a fraction of its directors can be chosen by a public official, a commission, or other directors. These selected directors are primarily there to represent the public's interest and have the same authority as the other directors, but they can't make up more than 20% of the total directors.
The bylaws may provide that one or more directors may be chosen by a public official or commission or by the other directors selected by the members. The director shall represent primarily the interest of the general public in the association. The director shall have the same powers and rights as other directors. These directors shall not number more than one-fifth of the entire number of directors.
bylaws public official commission
Section § 26226.5
This law allows a company's bylaws to create an executive committee that can handle all the duties and authorities of the board of directors, but the board still oversees and directs its actions.
The bylaws may provide for an executive committee and may allot to the committee all the functions and powers of the board of directors, subject to the general direction and control of the board.
bylaws executive committee board of directors
Section § 26226.6
This section allows an association to pay reasonable compensation to its officers, directors, and executive committee members for time spent working for the association.
An association may provide a fair remuneration for the time that is actually spent by its officers and directors in its service and for the service of the members of its executive committee.
association compensation fair remuneration officers' payment
Section § 26226.7
If there's an open spot on the board of directors that needs filling, and it's not because someone's term ended, the other board members can vote to fill it. But if the rules say board members are elected by districts, then someone from that specific district must be chosen or a special meeting can be held to vote a new person in from that district.
If a vacancy on the board of directors occurs, except by expiration of term, the remaining members of the board, by a majority vote, shall fill the vacancy, unless the bylaws provide for an election of directors by districts. If the bylaws provide for an election of directors by districts, the vacancy shall be filled either by the election of a director from the district in which the vacancy occurs or by the board of directors calling a special meeting of the members or stockholders in that district to fill the vacancy.
board of directors vacancy majority vote
Section § 26226.8
This law explains the roles that need to be filled within a board of directors. They must choose a president, at least one vice president, a secretary, a treasurer, and any other officers required by their bylaws. One person can hold more than one office, except for president and secretary. The treasurer's role can be filled by a bank, and in such cases, the secretary handles the usual money tasks, but the board decides where the money is kept.
(a)CA Business & Professions Code § 26226.8(a) The directors shall elect a president, one or more vice presidents, a secretary, a treasurer, and such other officers as may be prescribed by the bylaws. Any two or more offices, except those of president and secretary, may be held by the same person.
(b)CA Business & Professions Code § 26226.8(b) The treasurer may be a bank or a depository and, as such, shall not be considered as an officer, but as a function of the board of directors. In such case, the secretary shall perform the usual accounting duties of the treasurer, except that the funds shall be deposited only as and where authorized by the board of directors.
board of directors president vice president
Section § 26226.9
This law explains how members of an association can remove an officer or director. To start, a member needs to submit written charges and a petition signed by 5% of the members asking for the removal. The removal vote happens at the next member meeting, and a majority vote is needed to remove the person from their position. The accused officer or director will be told about the charges in advance and can defend themselves. If directors are elected by district, the petition needs 20% of district member signatures, and a special district meeting is called to vote on removal. A majority vote from that district is required to remove the director.
(a)CA Business & Professions Code § 26226.9(a) A member may bring charges against an officer or director by filing them in writing with the secretary of the association, together with a petition that is signed by 5 percent of the members, which requests the removal of the officer or director in question. The removal shall be voted upon at the next regular or special meeting of the association and, by a vote of a majority of the members, the association may remove the officer or director and fill the vacancy. The director or officer, against whom the charges have been brought, shall be informed in writing of the charges previous to the meeting and shall have an opportunity at the meeting to be heard in person or by counsel and to present witnesses. The person bringing the charges against him or her shall have the same opportunity.
(b)CA Business & Professions Code § 26226.9(b) If the bylaws provide for election of directors by districts with primary elections in each district, the petition for removal of a director shall be signed by 20 percent of the members that reside in the district from which the director was elected. The board of directors shall call a special meeting of the members who reside in that district to consider the removal of the director. By a vote of the majority of the members of that district at the special meeting, the director in question shall be removed from office.
member charges remove officer director removal
