§ 55A-8-25. Committees of the board.

295 words·~1 min read·/nc/chapter-55a/55a-8-25

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(a)Unless the articles of incorporation or bylaws provide otherwise, a board of directors may create one or more committees of the board and appoint members of the board to serve on them. Each committee shall have two or more members, who serve at the pleasure of the board.

(b)The creation of a committee and appointment of members to it shall be approved by the greater of:

(1)A majority of all the directors in office when the action is taken; or

(2)The number of directors required by the articles of incorporation or bylaws to take action under G. S. 55A-8-24.

(c)G.S. 55A-8-20 through G.S. 55A-8-24, which govern meetings, action without meetings, notice and waiver of notice, and quorum and voting requirements of the board, apply to committees of the board and their members as well.

(d)To the extent specified by the board of directors or in the articles of incorporation or bylaws, each committee of the board may exercise the board's authority under G.S. 55A-8-01.

(e)A committee of the board shall not, however:

(1)Authorize distributions;

(2)Recommend to members or approve dissolution, merger or the sale, pledge, or transfer of all or substantially all of the corporation's assets;

(3)Elect, appoint or remove directors, or fill vacancies on the board of directors or on any of its committees; or

(4)Adopt, amend, or repeal the articles of incorporation or bylaws.

(f)The creation of, delegation of authority to, or action by a committee does not alone constitute compliance by a director with the standards of conduct described in G.S. 55A-8-30. (1955, c. 1230; 1969, c. 875, s. 5; 1985 (Reg. Sess., 1986), c. 801, ss. 22, 23; 1993, c. 398, s. 1.)