§ 7521 Director Nomination Rules

• •Big companies (with 500+ members) can let people become directors in two ways: by following the company's rules or by getting enough signatures from members.
• •If you want to be a director and the company doesn't have rules for it, the board decides how you can be nominated.
• •You can also be nominated if enough members sign a petition for you. The number of signatures needed depends on how many votes the company has.
• •For small companies (under 5,000 votes), you need signatures from 2% of the voting members. For bigger companies (5,000+ votes), you need signatures from at least 0.05% of the voting members.

A big company with 10,000 members wants to add a new director. John wants to be nominated but isn't chosen by the board.

John can still try to become a director by getting signatures from members. Since the company has more than 5,000 votes, John needs signatures from at least 0.05% of the members. That means he needs 500 signatures (0.05% of 10,000) to be nominated.