Sponsored by:
Senator BOB SMITH
District 17 (Middlesex and Somerset)
SYNOPSIS
Concerns election of mutual savings bank holding company board of directors.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning election of mutual savings bank holding company boards of directors and amending P.L.1987, c.201.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 11 of P.L.1987, c.201 (C.17:9A-392) is amended to read as follows:
11. Every mutual savings bank holding company shall be managed by a board of not less than six nor more than 21 directors. Directors shall be elected by a plurality of the members [of the board of directors] of the mutual savings bank holding company at the annual meeting, for a term of up to three years, as provided in the bylaws. Each director shall serve for the term for which he is elected and until his successor is elected and has qualified. A vacancy on the board of directors may be filled by a plurality of the members of the board of directors for the remainder of the unexpired term. If the board fails to fill the vacancy within one year, the commissioner may do so. Elections of directors shall be certified by the board and shall be filed with the department within 15 days.
The board of directors shall hold an annual meeting within the first four months of each calendar year, and other meetings at such times and so often as they shall deem necessary. The annual meeting shall be held at a location within the State. A majority of a quorum of the board of directors shall be necessary to transact the business of the board.
(cf: P.L.1987, c.201, s.11)
2. This act shall take effect immediately.
STATEMENT
This bill amends the statute on mutual savings bank holding company board of directors elections to mandate that directors be elected by a plurality of members of the mutual savings bank holding company at the annual meeting. Under existing law, directors are elected by a plurality of the members of the board of directors.