Mutual water companies: boards of directors.

Existing law provides for the formation and operation of general corporations, and specifies that directors shall be elected to the board of directors at each annual meeting of shareholders to serve until the next annual meeting, except as provided for a publicly listed corporation. This bill would provide that a mutual water company incorporated as a general corporation may elect directors to staggered 4-year terms and allow the initially elected directors to determine by lot which of them shall instead serve a 2-year term, as specified. The bill would require the mutual water company to notify its shareholders, prior to the election, that the directors shall determine their terms by lot.