PROPOSED BYLAW AMENDMENT EXPLANATION
Members will vote on a proposed amendment to Section 4.10 of the Choctaw Electric Cooperative Bylaws.*
- Paragraph 1 - Current Bylaw Wording: No trustee shall receive compensation from any other business associated with the cooperative. This includes, but not limited to: Western Farmers Electric Cooperative.
- Paragraph 1 - Proposed Change: No trustee shall receive compensation from any other business associated with the cooperative, EXCEPT compensation from Western Farmers Electric Cooperative.
- Explanation: Under the current bylaw, trustees are prohibited from receiving compensation from any business associated with the cooperative, including Western Farmers Electric Cooperative (WFEC), Choctaw Electric’s Generation and Transmission Cooperative.
As a result, Choctaw Electric trustees serving on the WFEC board are unable to receive the per diem paid by WFEC to its board
members. Instead, Choctaw Electric pays for the per diem.
- The proposed change would allow trustees to receive a per diem from WFEC, alleviating Choctaw Electric of that expense, while still prohibiting them from receiving compensation from any other associated businesses.
- Paragraph 4 - Current Bylaw Wording: A close relative of, or a former board member, shall not be allowed to be awarded contracts or receive any financial compensation from the cooperative.
- Paragraph 4 - Proposed Change: Upon leaving the Board of Trustees, a former trustee or a close relative of a former trustee, shall not be allowed to be awarded contracts or receive any financial compensation from the cooperative for a period of five years.
- Explanation: The current bylaw prohibits former board members and their close relatives from receiving contracts or financial compensation from the cooperative. The proposed change introduces a five-year restriction period. After this period, former board members and their close relatives could be considered for contracts. Additionally, this change would allow close relatives of board members to be considered for employment opportunities at Choctaw Electric after five years.
*Changes will be voted on as a single amendment.