Sec. 8. Preserving mutuality bylaws authorized
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/bill/113/hr/1603/ih/section-8·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Board of Directors of a mutual depository may adopt a bylaw to preserve the mutuality of a mutual depository. Such bylaw provisions may include— supermajority voting requirements, up to 80 percent, by the members to approve a conversion to stock form; a prohibition against any person from serving, or nominating a person to serve, on the Board of Directors of the mutual depository, if such person or nominee has an intention to propose a conversion from mutual to stock form; a requirement that any person serving or nominated to serve on the Board of Directors may not propose a conversion from mutual to stock form for a period of time not exceeding five years, as determined by the Board, beginning on the later of the date such bylaw is adopted or such person is elected to serve on the Board; a prohibition against any member from proposing a conversion to stock form at any annual or special meeting of members or by the written consent of members; and a violation of one or more of the bylaw provisions adopted to preserve mutuality shall be a basis for termination as a member of the Board of Directors.
Notwithstanding the foregoing, in no event shall any bylaw adopted pursuant to section
(a)have any force and effect in the event the mutual depository is not well capitalized in accordance with the rules established by such depositories appropriate Federal banking agency.