Texas Water Code 67.005 – Directors
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(a) A corporation may not have more than 21 directors.
(b) The corporation may increase the number of directors by amendment to the bylaws but may not exceed the limit imposed by Subsection (a).
Terms Used In Texas Water Code 67.005
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Succeeding: means immediately following. See Texas Government Code 312.011
(c) The bylaws of the corporation may provide that directors serve staggered terms of approximately two or three years.
(d) At the first annual meeting of the shareholders, the directors shall be divided into two or three classes according to the length of the terms the directors serve. The classification of directors may not take effect before that meeting.
(e) The division of the directors and the corresponding terms must be set so that:
(1) one-half of the directors, as nearly as possible, are elected annually, if a two-year term is provided; or
(2) one-third of the directors, as nearly as possible, are elected annually, if a three-year term is provided.
(f) After the implementation of two-year or three-year terms for directors, as directors’ terms expire, the members shall elect their successors to serve until the second or third succeeding annual meeting after their election, as appropriate.