Explain the term of office for members of a corporate board of directors

Question

What will be an ideal response?

Answer 1

The term of a director's office expires at the next annual shareholders' meeting following his or her election, unless terms are staggered. The Revised Model Business Corporations Act (RMBCA) allows boards of directors that consist of nine or more members to be divided into two or three classes that are elected to serve staggered terms of two or three years. The specifics of such an arrangement must be outlined in the articles of incorporation. Vacancies on a board of directors can occur because of death, illness, the resignation of a director before the expiration of his or her term, or an increase in the number of positions on the board. Such vacancies can be filled by the shareholders or the remaining directors.