§ 5724. Term of office of directors.

323 words·~1 min read·/pa/title-15/chapter-57/5724

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General rule.-- Each director of a nonprofit corporation shall hold office until the expiration of the term for which the director was selected and until a successor has been selected and qualified or until the director's earlier death, resignation or removal. Directors, other than those selected by virtue of their office or former office in the corporation or in any other entity or organization, shall be selected for the term of office provided in the bylaws. In the absence of a provision fixing the term, it shall be one year.

(b)Resignations.-- A director may resign at any time upon notice in record form to the corporation. A resignation that is not conditioned upon acceptance by the board of directors shall be effective upon receipt by the corporation of the notice of resignation, unless the notice specifies a later effective time or an effective time determined upon the happening of an event or events. If a resignation is conditioned upon its acceptance by the board, a decision by the board to accept or reject the resignation shall be made by the board in the manner required by Subchapter B (relating to fiduciary duty).

(c)Decrease in number.-- A decrease in the number of directors shall not have the effect of shortening the term of any incumbent director.

(d)Classified board of directors.-- Except as otherwise provided in the bylaws, if the directors are classified in respect of the time for which they shall severally hold office:

(1)Each class shall be as nearly equal in number as possible.

(2)The term of office of at least one class shall expire in each year.

(3)The members of a class shall not be elected for a longer period than four years.

15c5724v

(July 9, 2013, P.L.476, No.67, eff. 60 days; Nov. 3, 2022, P.L.1791, No.122, eff. 60 days)

2022 Amendment. Act 122 amended subsec. (b).

15c5725s