§ 13301.
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/vt/title-8/chapter-203/13301A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 13301. Corporators of mutual financial institutions
(a)Persons named in the organizational documents constitute the original board of corporators of a mutual financial institution. Membership on this board continues until terminated by death, resignation, or disqualification as provided in this section.
(b)All corporators shall be residents of the geographic area that the financial institution serves or an area proximate to this geographic area. A person shall not continue as a corporator after ceasing to be a resident of the financial institution’s geographic area or an area proximate to this geographic area.
(c)Any corporator failing to attend the annual meeting of the board of corporators for two successive years ceases to be a member of the board unless reelected by a vote of the remaining corporators.
(d)The number of corporators may be fixed or altered by the internal governance documents of the financial institution, and vacancies may be filled by election at any annual meeting.
(e)More than 50 percent of all corporators shall be depositors of the financial institution.
(f)At least two-thirds of all corporators shall be independent. As used in this subsection, an “independent corporator” means an individual who is not an employee, director, or officer of the financial institution, its subsidiaries, or its affiliates.
(g)Corporators shall be fiduciaries of the depositor base and shall exercise their authority in the best interests of the depositors with a duty of loyalty and care. In exercising their duties as corporators, corporators shall consider the interests of the depositors, the borrowers, and other customers of the financial institution; the general benefit and economic well-being of the communities served by the financial institution; and the safety, soundness, and general business needs of the financial institution. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2025, No. 23, § 25, eff. July 1, 2025.)