§ 1171 Bank Trust Company Board Size

Financial Code·California

AI SummaryVerified

This law says a bank or trust company must have between 5 and 25 people on its board, and it can’t change its rules to have fewer than 5 directors.

Key Takeaways

•Board must have at least 5 directors.
•Board can have no more than 25 directors.
•The company cannot amend its articles or bylaws to drop the number below five.

Example

A small bank wants to cut its board size from 6 directors down to 4 to save money.

Because the law requires at least 5 directors, the bank cannot legally make that change; doing so would break the rule.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1171 Bank Trust Company Board Size

The board of a bank or trust company hereafter organized shall consist of not less than 5 nor more than 25 directors, and no bank or trust company shall amend its articles or bylaws so as to reduce the number of directors below five. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 10, 2026

Key Terms

board bank trust company directors articles bylaws

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1171.

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Key Takeaways

Example

Key Terms

Related Statutes

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