Sec. 62-4. Board of directors.
Montgomery County, Md., Code § 62-4 (2026)
Sec. 62-4. Board of directors.LinkCopy Citation
(a)
In general. A board of directors must govern the district corporation.
(b)
Membership.
(1)
Subject to paragraph (2) of this subsection, the board of a district corporation consists of nine members, appointed by the members of the District.
(2)
Appointment procedures.
(A)
Until the first meeting of the board of directors, the entire board must consist of the 8 directors constituting the initial board of directors, as set forth in the district corporation’s articles of incorporation. Thereafter, the entire board must be comprised of 9 directors. After the initial members, the directors must be elected by the members. At the time of election, the Board must be comprised of:
(i)
3 representatives of an owner of property in the District assessed at more than $20 million;
(ii)
2 representatives of an owner of property in the District assessed at $20 million or less;
(iii)
1 representative of a business employing more than 50 full-time equivalent employees in the District; and
(iv)
3 representatives of a business employing 50 or less full-time equivalent employees in the District.
The Board must not include both an owner and a tenant of the same property in the District at the same time.
(B)
The first election of directors by the members must be held within 120 days after the date this law takes effect. Subsequent elections must be held annually as provided in subparagraph C.
(C)
The board must appoint a nominating committee, which must nominate a slate of candidates for each annual election. Members may nominate additional candidates at the meeting called for the purpose of electing directors. Members and persons other than members are eligible to become directors. Only directors may serve on a committee.
(i)
Prior to the first election of directors, the nominating committee must nominate three slates of candidates: one slate to serve as the first class of directors for the term of 3 years; one slate to serve as the second class of directors for the term of 2 years and one slate to serve as the third class of directors for the term of 1 year. At the first election of directors, the members must hold a separate election to elect each class of directors.
(ii)
At each annual election of directors thereafter, the successors to the class of directors whose term expires that year must be elected for the term of 3 years, so that the term of office of one class of directors expires in each year.
(iii)
For each election of directors, each member may cast no more than their total number of votes for any one candidate. Directors must not be elected through cumulative voting.
(iv)
Each director elected by the members must serve until his or her successor is elected, or until his or her earlier death, resignation or removal in accordance with the district’s bylaws.
(c)
Chair; officers. From among its members, the board must elect a chair and other officers.
(d)
Quorum.
(1)
A majority of the voting members of the board is a quorum.
(2)
The board may act on a resolution only by the affirmative vote of a majority of the voting members.
(e)
Compensation; reimbursement for expenses. A member of the board:
(1)
must not receive compensation as a member of the board; but
(2)
may be reimbursed for expenses incurred in performing the member’s duties.
(f)
Powers. The board must exercise its powers by resolution.
(g)
Annual report. The board must file an annual report with the Executive and the Council that includes:
(1)
a financial statement for the preceding year;
(2)
a proposed operating budget for the current fiscal year;
(3)
any proposed revisions to the business plan; and
(4)
a narrative statement or chart showing the results of operations in comparison to stated goals and objectives.