1. Within 60 days after the entry of the decree incorporating the district, the Governor shall appoint a board of directors therefor in accordance with the petition. If the district includes land within more than one county, the representative or representatives of each county must be appointed from a list of two or more nominees submitted by the board of county commissioners of the represented county. No person may be disqualified to act as a director because that person is an officer, employee or stockholder of, or owner of land within, any irrigation or other district constituting a division, or part of a division, or subcontracting agency of the district, nor may any director for that reason be disqualified to vote or act upon any matter involving such irrigation or other district or subcontracting agency. 2. The Governor shall fix the terms of office so that not less than three of the directors first appointed after organization of the district shall serve until the end of the calendar year next succeeding their appointment, and the remaining directors first appointed shall serve until the expiration of 3 years after the end of the calendar year in which they were appointed. All succeeding terms of office must be for 4 years. Upon the expiration of the term of office of any director, the Governor shall, upon the recommendation of the district or incorporated city, or combination of incorporated cities, or subcontracting agency, as the case may be, from which the director was appointed, appoint a successor to the director to hold office for 4 years. If the district includes land within more than one county, the representative or representatives of each county must be appointed from a list of two or more nominees submitted by the board of county commissioners of the represented county. 3. All vacancies in the office of director must be filled in the manner provided in subsection 2. Each director shall hold office during the term for which he or she is appointed and until a successor is appointed and has qualified. 4. An annual meeting of the board of directors must be held on a date to be fixed by the board and, in addition thereto, the board shall hold meetings at least quarterly on dates to be fixed in the bylaws of the district. A report of the business transacted during the preceding year by the district, including a financial report prepared by qualified public accountants, must be filed with the board of county commissioners of each county in which the district is situated on or before the date of the annual meeting.
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