1. (1) Unless the organic rules otherwise provide, and subject to subsection (3) of this section, each director of a limited cooperative association shall be an individual who is a member of the association or an individual who is designated by an entity member for purposes of qualifying and serving as a director. Initial directors need not be members.
2. (2) Unless the organic rules otherwise provide, a director may be an officer or

3. (3) employee of the limited cooperative association. If the organic rules provide for nonmember directors, the number of nonmember directors may not exceed:

   1. (a) One (1), if there are two (2) through four (4) directors;
   2. (b) Two (2), if there are five (5) through eight (8) directors; or
   3. (c) One-third (1/3) of the total number of directors if there are at least nine (9) directors.
4. (4) The organic rules may provide qualifications for directors in addition to those in this section.

Effective: July 12, 2012

History: Created 2012 Ky. Acts ch. 160, sec. 56, effective July 12, 2012.