Comprehensive Standards: Institutional Mission, Governance, and Effectiveness 3.2.5 (dismissal from governing board)
Members of the governing board can be dismissed only for cause and by due process.

Compliance
North Carolina State University is in compliance with this standard.

Explanation
Two boards govern NC State University: the Board of Governors of the University of North Carolina (BOG) and the Board of Trustees of North Carolina State University (BOT).  Members of either board can be dismissed only for cause and by due process. 

According to state law, the BOG exists for the purpose of planning and developing the state’s higher education system (NC General Statute 116-11(1)).  The BOG’s duties include determining, managing and governing the affairs of the member institutions (NC General Statute 116-11(2)).  To carry out these tasks, board members act on behalf of the people of North Carolina (NC General Statute 116-7).  Once elected, board members do not represent particular interest groups.   

The mission of the BOT is similar, although restricted in scope.  It is to develop NC State University and help it achieve excellence, to ensure that it serves the interests of the people of the state and complements the other UNC system schools (POL01.05.1).

Causes for Dismissal
There are two main reasons for dismissal from the governing boards: self-dealing and absenteeism.

Self-dealing
A major concern of the lawmakers who drafted section 116 of the NC General Statutes was the potential for abuse of power, especially in using governing authority to advance personal interests.  Therefore, state law prohibits members of either board from being involved in business transactions with companies in which they have a financial interest (NC General Statute 14-234).  The same statute provides criminal penalties for “self-dealing.”

BOG and BOT policy amplify this state law, each governing body exhorting its members to eschew self-dealing.  For instance, both the BOG and the BOT are subject to Dual Memberships and Conflicts of Interest, section 200.1 of the Policy Manual of the University of North Carolina. 

The dual memberships policy prescribes a variety of sanctions for self-dealing, including reprimand or censure, removal from any board office or committee assignment, and reporting the violation to the entity that appointed the member.

In fact, the BOT follows specific policy designed to prevent self-dealing from even taking place.  The Bylaws of the BOT require its executive committee to “review and take a final action on proposed contracts of $10,000 or more that may constitute a potential conflict of interest under the Dual Memberships and Conflicts of Interest policy of the Board of Governors” (POL01.05.1, emphasis added).     

Absenteeism
State law also indicates that members of the BOG can be removed for failure to attend meetings.   “Whenever a member shall fail, for any reason other than ill health or service in the interest of the State or nation, to be present for four successive regular meetings of the Board, his place as a member shall be deemed vacant” (NC General Statute 116-7).  A similar provision applies to members of the BOT: “Whenever a member shall fail, for any reason other than ill health or service in the interest of the State or nation, to be present for three successive regular meetings of a board of trustees, his place as a member shall be deemed vacant” (NC General Statute 116-31).

Due Process
Section 61 of Robert’s Rules of Order Newly Revised (10^th edition) outlines due process in disciplinary procedures, including the rights of those accused of wrongdoing to have a confidential investigation by an impartial committee, to hear the charges against them, to have their side of the story heard, and to receive a fair and open trial.  All of these rights apply to members of the BOT and BOG.

The Bylaws of the BOT state that, “Except as modified by specific rules and regulations enacted by the Board of Trustees, Robert's Rules of Order Newly Revised (latest edition) shall constitute the rules of the parliamentary procedure applicable to all meetings of the Board of Trustees and its several committees” (POL01.05.1).

Supplementary Information
For more information about the requirements for membership on the governing boards, terms in office and ancillary matters, see Core Requirements # 2.  For more information on how the conflict of interest policy is applied on campus, see Comprehensive Standards: Institutional Mission, Governance, and Effectiveness # 4.  Further, for information on limitations on the BOT, see Comprehensive Standards: Institutional Mission, Governance, and Effectiveness # 7.

References

• BOG conflict of interest policy (http://www.northcarolina.edu/legal/policymanual/200.1.pdf)

• Bylaws of the BOT, POL01.05.1 (http://www.ncsu.edu/policies/governance_admin/bot/POL01.05.1.php)

• NC General Statute 116-7 (http://www.ncga.state.nc.us/Statutes/GeneralStatutes/HTML/BySection/Chapter_116/GS_116-7.html)

• NC General Statute 116-11 (http://www.ncga.state.nc.us/Statutes/GeneralStatutes/HTML/BySection/Chapter_116/GS_116-11.html)

•   NC General Statutes 116-31 (http://www.ncga.state.nc.us/Statutes/GeneralStatutes/HTML/BySection/Chapter_116/GS_116-31.html)

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