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(1) Board elections must be completed before the outgoing board's term expires, so a newly-elected board takes over immediately. (2) State law designates the authority overseeing electoral rolls and conducting these elections, with procedures/guidelines also set by state law.
This ensures continuity of governance - a co-operative society should never be left without a properly elected board, since the next election must be completed before the current board's term actually ends.
This provision was meant to prevent the common historical problem of co-operative society elections being repeatedly delayed, leaving unelected or expired boards in charge for extended periods.