§77cc Directors of Corporation; Appointment, Term of Office, and Removal

Summary

A board of six directors will run the Corporation. The Federal Trade Commission must appoint the six directors soon after the law starts and pick one of them as chair and one as vice chair. When those two later leave the board, the board itself will elect future chairs and vice chairs. Of the first six, two serve two years, two serve four years, and two serve six years as set by the Commission. After that, the Commission appoints replacements to six-year terms, except that someone filling a vacancy serves only the leftover time. Anyone who in the past five years had any interest in a company that sold or offered foreign securities cannot be a director. The board can remove a director at a special meeting if at least two-thirds vote to remove them, but the director must get seven days’ notice and can speak in their defense.