1. Each community action agency shall have a board of directors, as provided by the bylaws of the corporations, of not less than twelve nor more than thirty-six members. One-third of the members of the board shall be elected public officials, currently holding office, or their representatives, except that if the number of elected officials reasonably available and willing to serve is less than one-third of the membership of the board, membership on the board by appointive public officials may be counted in meeting such one-third requirement. At least one-third of the members shall be persons chosen in accordance with democratic selection procedures adequate to assure that they are representative of the poor in the area served, and the remainder of the members shall be officials or members of business, industry, labor, religious, welfare, education, or other major groups and interests in the community.

2. The governing board shall determine personnel, fiscal and program policies and approve proposals for financial assistance and the disbursement of funds.