This bill amends existing laws regarding the composition of boards of directors for consumer cooperatives and cooperative associations in Washington State. It introduces a requirement that for any cooperative association or consumer cooperative with 2,500 or more employees worldwide, the articles of incorporation or bylaws must reserve two positions on the board 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, benefits, or employment conditions affecting their roles.

Additionally, the bill clarifies the structure and election process for directors, stating that the number of directors must be at least 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 terms of office for directors can vary, and provisions are made for the removal of directors as outlined in the articles of incorporation. Overall, the bill aims to enhance employee representation on boards while maintaining flexibility in governance structures.

Statutes affected:
Original Bill: 23.86.080, 24.06.130