Page:United States Statutes at Large Volume 54 Part 1.djvu/517

 54 STAT.] 76TH CONG. , 3D SESS. - CH. 397-JUNE 19, 1940 SEC. 7. SAME; AMENDMENTS; FEE.- - Amndmdments to the articles may be proposed by a two-thirds vote of the board of directors, or by petition of 10 per centum of the association's members. Notice of the meeting to consider such amendment shall be sent by the secre- tary at least thirty days in advance thereof to each member at his last-known address, accompanied by the full text of the proposal and by that part of the articles to be amended. Two-thirds of the members voting may adopt said amendment and when verified by the president and secretary, it shall be filed and recorded with the recorder of deeds within thirty days of its adoption, and a fee of $1 shall be paid. If the amendment is to alter the preferences of outstanding shares of any type, or to authorize the issuance of shares having preferences superior to outstanding shares of any type, the vote of two-thirds of the members owning such outstanding shares affected by the change shall also be required for the adoption of the amendment; if the amendment is to alter the rule by which members' property rights in a nonshare association are determined, a vote of two-thirds of the entire membership shall be required. The amount of capital and the number and par value of shares may be diminished or increased by amendment of the Articles, but the capital shall not be diminished below the amount of paid-up capital existing at the time of amendment. ARTICLE IV-BYLAWS SEC. 8. ADOPTION, AMENDMENT, OR REPEAL OF BYLAWS. -Bylaws shall be adopted, amended, or repealed by at least a majority vote of the members voting. SEC. 9. CONTENTS OF BYLAWS.- The bylaws may, within the limita- tions of this Act provide for- (1) The method and terms of admission to membership and the disposal of members' interests on cessation of membership for any reason; (2) The time, place, and manner of calling and conducting meetings; (3) The number or percentage of the members constituting a quorum; (4) The number, qualifications, powers, duties, term of office, and manner, time, and vote for election, of directors and officers; and the division or classification, if any, of directors to provide for rotat- ing or overlapping terms; (5) The compensation, if any, of the directors, and the number of directors necessary to constitute a quorum; (6) The method of distributing the net savings; 7) The various discretionary provisions of this Act as well as other provisions incident to the purposes and activities of the association. ARTCLE V-MErETINGS SEC. 10. REGULAR AND SPECIAL MEETIN. -Regular meetings of members shall be held as prescribed in the bylaws, but shall be held at least once a year. Special meetings may be demanded by a major- ity vote of the directors or by written petition of at least one-tenth of the membership, in which case it shall be the duty of the secretary to call such meeting to take place within thirty days after such demand. Regular or special meetings, including meetings by units as hereinafter provided, may be held within or without the District of Columbia as the articles may prescribe. SEC. 11 . NOTICE OF MEETINGS.- The secretary shall give notice of the time and place of meetings by sending a notice thereof to each 483 Amendments; fee. Alteration of prefer- ences of outstanding shares, etc. Amount of capital; number and par value of shares. Adoption, amend- ment, or repeal of bylaws. Contents of bylaws. Regular and special meetings. Notice of meetings.

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