Representative Form of Government Defined

Sec. 885.054. REPRESENTATIVE FORM OF GOVERNMENT DEFINED. A fraternal benefit society has a representative form of government if: (1) the society has a supreme governing body constituted as: (A) an assembly, as described by Section 885.055; or (B) a board, as described by Section 885.057; (2) the officers of the society are elected by the supreme governing body or the board of directors; (3) only a benefit member is eligible to serve as a member of the supreme governing body, the board of directors, or an intermediate assembly of the society; (4) only a benefit member may vote on the management of the society's insurance affairs; (5) a voting member of the society has only one vote; and (6) a voting member of the society may not cast a vote by proxy. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.