Section 96Sec./Art. 96

Articles of Incorporation. - The articles of incorporation of a close corporation may provide for:

(a) A classification of shares or rights, the qualifications for owning or holding the same, and restictions on their transfers, subject to the provisions of the following section;

(b) A classification of director into one (1) or more classes, each of whom may be voted for and elected solely by a particular class of stock; and

(c) Greater quorum or voting requirements in the meetings of stockholders or directors than those provided in this Code.

The articles of incorporation of a close corporation may provide that the business of the corporation may provide that the business of the corporation shall be managed by the stockholders of the corporation rather than by a board of directors. So long as this provision continues in effect, no meeting of stockholders need be called to elect directors: Provided, That the stockholders of the corporation shall be deemed to be directors for the purpose of applying the provisions of this Code, unless the context clearly requires otherwise: Provided, further, That the stockholders of the corporation shall be subject to all liabilities of directors.

The articles of incorporation may likewise provide that all officers ro employees or that specified officers or employees shall be elected or appointed by the stockholders, instead of by the board of directors.