This bill amends existing laws regarding the composition of boards of directors for consumer cooperatives and cooperative associations in Washington State. It establishes that for any cooperative association with 2,500 or more employees worldwide, the articles of incorporation or bylaws must reserve two board positions for nonsupervisory or nonmanagerial employees. These employees must be selected through a majority vote among their peers and are prohibited from voting on matters related to wages and employee benefits.

Additionally, the bill clarifies the structure and election process for directors in corporations, ensuring that the number of directors is not less than three and can be adjusted through bylaw amendments. It specifies that the first board of directors will be named in the articles of incorporation and will serve until the first annual election. The bill also allows for the division of directors into classes with varying terms, while maintaining that directors hold office until their successors are elected or appointed.

Statutes affected:
Original Bill: 23.86.080, 24.06.130