Directors—election, appointment, etc.
Section 18
SEC. 18. Directors—election, appointment, etc.—The affairs of the association shall be managed by a board of not less than five directors, elected by the members, or stockholders entitled to vote. The by-laws may provide that the territory in which the association has members shall be divided into districts and that the directors shall be elected respectively by the members, or stockholders entitled to vote, in such districts. In such a case the by-laws shall specify the number of directors to be elected by each district, the manner and method of reapportioning the directors and of redistricting the territory covered by the association. The by-laws may provide that one or more directors may be appointed by any public official. The director or directors so appointed need not be members or stockholders of the association, but shall have the same powers and rights as other directors. Such directors shall not number more than one-fifth of the entire number of directors. Except as provided in the last preceding paragraph of this section no person shall become a director of any association, organized under this Act, unless he is a member or an owner of common stock thereof.