Laserfiche WebLink
<br />c.D <br />~ <br />m <br /> <br />{.;J <br />::::> <br />(:) <br /> <br />and for the proper maintenance and operation of the <br />Company and its officers, and for the purpose of <br />creating such reserve or contingent fund as the Board <br />may from time to time deem necessary and proper for the <br />financial stability and welfare of the Company. <br /> <br />4. Rules. <br /> <br />Pursuant to Bylaw Article III, Section 3, paragraph 3, the <br /> <br />Board of Directors is authorized to make and promulgate rules not <br /> <br />inconsistent with state law, the Articles or Bylaws of the <br /> <br />Company. Pursuant to that authority, the Board has promulgated <br /> <br />eight rules which appear in the appendix to this report. Due to <br /> <br />the fact that these rules may be altered, amended or even <br /> <br />abolished by the Board of Directors in their discretion, we do <br /> <br />not believe it necessary to set forth in detail recommendations <br /> <br />as to changes or alterations in the rules. <br /> <br />Suffice it to say <br /> <br />that at such time as the Articles and Bylaws are appropriately <br /> <br />amended, the rules will need to be conformed, to minor degrees, <br /> <br />to the changes made in the Articles and Bylaws. <br /> <br />IV. CONCLUSION <br /> <br />From our legal review of the statutory authorities under <br /> <br />which the Company is organized, including a legal review of the <br /> <br />Company's Articles, Bylaws and other pertinent organizational <br /> <br />documents, we have concluded that amendments to the statutory <br /> <br />authorities and organizational documents are both necessary and <br /> <br />desirable so as to enable the Company to enter into contracts <br /> <br />with the United States as a non-Federal entity under the Salinity <br /> <br />34 <br />