State Legislative Updates

Iowa – Public Corporations Must Amend Articles of Incorporation Regarding Terms of Directors

Iowa – Public Corporations Must Amend Articles of Incorporation Regarding Terms of Directors

Senate File 2378 repeals the requirement that certain Iowa public corporations must divide their board of directors into three groups with the directors serving staggered three-year terms.  The repeal takes effect January 1, 2022.  However, effective January 1, 2019, those corporations subject to the staggered board requirement are required to file an amendment to their articles of incorporation.  The amendment must include that the staggered terms of their three classes of directors elected or appointed before January 1, 2019 shall cease at the expiration of their term and that the terms of directors elected or appointed or on after January 1, 2019 shall expire at the next annual shareholders’ meeting following their election or appointment. 

https://www.legis.iowa.gov/docs/publications/iactc/87.2/CH1015.pdf

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