AGO 1996-174.

• Case Date: April 04, 1996
• Court: Alabama

Alabama Attorney General Opinions 1996. AGO 1996-174. 1996-174April 4, 1996Honorable Gary Daffron Mayor, Town of Ragland 146 Church Street P. O. Box 10 Ragland, AL 35131 Municipalities - Water and Gas Boards - Dissolution - Corporations Governing body which authorized creation of corporation to provide utility services per __ 11-50-310, et seq., may not, per _ 11-50-313, increase membership of board of directors without approval of such board. Such corporation may be dissolved as set forth in _ 11-50-316(b).Dear Mayor Daffron: This opinion is issued in response to your request for an opinion from the Attorney General. QUESTIONS 1. Can a governing body increase the number of the board of directors from three to five members, or five to seven members, without prior approval of the board of directors of an incorporated board, such board being incorporated under Act No. 175 of the 1951 Regular Session of the Legislature? 2. Can a governing body elect to pay the indebtedness of an incorporated board, thereby dissolving it? 3. By what method can a board incorporated under Act No. 175 of the 1951 Regular Session of the Legislature be dissolved? FACTS, LAW AND ANALYSIS Act No. 175 of the 1951 Regular Session of the Legislature which relates to utility systems, as subsequently amended, is codified as Sections 11-50-310 through 11-50-318 and 11-50-320 through 11-50-324, Code of Alabama 1975. Section 11-50-319 was added by Act No. 75-1151. The number of members of the board of directors of such a utility system is provided for in _ 11-50-313. The minimum is three members. This may be increased by "the governing body of any municipality which has . . . authorized the creation of a corporation as provided in this article" to five members. If the municipality has a population of less than 5,000, according to the most recent federal census, it may increase the board from five to seven members. Accordingly, under the provisions of _ 11-50-313 the municipal governing body may increase the size of the board of directors of a utility system established under __ 11-50-310, et seq. However, this would be an amendment to the charter. In Waterworks Bd. v. Huffstutler, 299 So.2d 268 (1974) the Supreme Court held that such a change requires approval by the board. Section 11-50-316(b) provides: "When the principal of and the interest on...