The affairs of an association shall be managed by a board of not less than five directors, elected by the members or stockholders from their own number. 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 according to such districts. In such case, the bylaws shall specify the number of directors to be elected by each district and the manner and method of reapportioning the directors and redistricting the territory covered by the association. The bylaws may provide that primary elections shall be held in each district to elect the directors apportioned to such districts and the results of all such primary elections must be ratified by the next regular meeting of the association. The bylaws may provide that one or more directors may be appointed by the Commissioner of Agriculture and Industries, the President of Auburn University or any other public official or commission. The director or directors so appointed need not be members or stockholders of the association, but shall have the same powers and rights as other directors. An association may provide a fair remuneration for the time actually spent by its officers and directors in its service. No director, during the term of his office, shall be a party to a contract for profit with the association differing in any way from the business relations accorded regular members or holders of common stock of the association or to any other kind of contract differing from terms generally current in that district. When a vacancy on the board of directors occurs, other than 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 district. In such a case, the board of directors shall immediately call a special meeting of the members or stockholders in that district to fill the vacancy.
Structure Code of Alabama
Chapter 10 - Cooperatives and Associations.
Article 3 - Incorporated Marketing Associations.
Section 2-10-50 - Definitions.
Section 2-10-51 - Nonprofit Associations.
Section 2-10-52 - Who May Form Association.
Section 2-10-53 - Objects of Association.
Section 2-10-54 - Powers of Association.
Section 2-10-55 - Who May Become Members or Stockholders.
Section 2-10-56 - Contents of Articles of Incorporation; Signing, Acknowledgment and Filing.
Section 2-10-57 - Amendments to Articles of Incorporation.
Section 2-10-58 - Provisions of Bylaws.
Section 2-10-59 - Regular and Special Meetings of Members.
Section 2-10-60 - Selection of Directors; Contracts With Association; Vacancies.
Section 2-10-63 - Removal of Officer or Director.
Section 2-10-64 - Referring Questions to Entire Membership.
Section 2-10-65 - Marketing Contracts.
Section 2-10-66 - Exchange of Stock.
Section 2-10-67 - Annual Report of Association.
Section 2-10-68 - Conflicting Laws Not Applicable.
Section 2-10-69 - Association May Form, Own or Control Another Corporation.
Section 2-10-70 - Agreements Between Associations.
Section 2-10-71 - Association Not a Monopoly.
Section 2-10-72 - Applicability of General Corporation Laws.
Section 2-10-73 - Fees to Probate Judges and Secretary of State.
Section 2-10-74 - Fees for Filing Articles of Incorporation.