SSB 1110 (LSB 1957XC (4) 85)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON HOGG)

A BILL FOR

An Act relating to the boards of directors of public corporations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  REPEAL.  2011 Iowa Acts, chapter 2, section 9, is repealed.
EXPLANATION
   BACKGROUND. In 2011, the 84th General Assembly enacted S.F. 325 which provides for the management of a public corporation, formed under the Iowa business corporation Act, by its board of directors (Code chapter 490). The Act defines a public corporation (Code section 490.140), and requires that a public corporation divide its directors into three equal groups, referred to as “classes”, elected by the public corporation’s holders of common shares, with each class serving staggered three-year terms (Code section 490.806A). The Act also excuses certain public corporations from the staggered term requirement. Finally, the Act requires that the board of directors of an unexcused public corporation amend its articles of incorporation to comply with the Act’s staggered term requirement (Code section 490.1005A). The Act does not prohibit a public or private corporation from including a provision in its articles of incorporation requiring staggered terms for its directors as generally allowed under the Code chapter (Code section 490.806). The Act is repealed on December 31, 2014. The Act’s future repeal date provides for the continued applicability of the public corporation’s articles of incorporation as amended.
   BILL’S REPEAL OF ACT’S REPEAL. The bill repeals the Act’s future repeal effective July 1, 2013.