38.2-4212 - Board of directors of nonstock corporation operating plan. - Virginia Statutes

§ 38.2-4212. Board of directors of nonstock corporation operating plan.

A. Notwithstanding the provisions of §§ 13.1-853, 13.1-854 and 13.1-855, anonstock corporation operating a plan pursuant to §§ 38.2-4202, 38.2-4203,38.2-4204, or § 38.2-4208 shall be subject to the following:

1. The board of directors of the nonstock corporation shall consist of nomore than fifteen members. However, if two or more nonstock corporationsmerge, the board of directors of the new or surviving nonstock corporationmay consist of no more than twenty members. Further, the board of directorsmay be increased to a size not exceeding the aggregate number of directors onthe merging nonstock corporations' boards for the balance of the year inwhich merger occurs and for the following five years.

2. Except as permitted by subsection B of this section, a majority of themembers of the board of directors of the nonstock corporation shall bepersons who are covered by subscription contracts issued by the nonstockcorporation and who are not providers of health care services, or employeesor salaried officers of the nonstock corporation.

B. Notwithstanding the provisions of §§ 13.1-853, 13.1-854 and 13.1-855, anynonstock corporation operating a plan pursuant to § 38.2-4203 may have aboard of directors consisting of a majority of providers of health careservices.

C. As used in this section, "providers of health care services" shallinclude, but not be limited to, physicians, pharmacists, nurses, physicaltherapists, hospital administrators, employees or majority or controllingstockholders of hospitals, and other persons furnishing health-relatedservices.

D. This section shall not apply to any foreign nonstock corporation licensedin this Commonwealth on or before July 1, 1980.

(Code 1950, §§ 32-195.5:1, 32-195.5:2; 1972, c. 429, §§ 38.1-816, 38.1-817;1974, c. 54; 1979, c. 721; 1980, c. 682; 1982, c. 129; 1985, c. 233; 1986, c.562.)