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California Law (Last Updated: March 4, 2014) |
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Corporations Code - CORP |
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Title 1. CORPORATIONS |
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Division 3. CORPORATIONS FOR SPECIFIC PURPOSES |
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Part 5. SMALL BUSINESSES |
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Chapter 1. California Small Business Financial Development Corporations |
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ARTICLE 5. Corporation Board |
Section 14014.
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The bank shall enter into a contract with each corporation that shall require that:
(a) A person may not serve on a corporation's board of directors who is not a resident of, or person conducting business in, the primary service area described in the articles of incorporation.
(b) A corporation's board of directors shall include representatives from all of the following:
(1) The financial community.
(2) The business community.
(3) The economically disadvantaged.
(c) The chief executive officer of a corporation, or his or her designee, is the only employee of the corporation who may serve on its board of directors.
(d) A person who has a financial interest related to a matter over which the board of directors has authority may not make, participate in making, or in any way attempt to influence that matter.