361.262. Removal or suspension from office, grounds--written notice of intention, effective when--served on whom.
Removal or suspension from office, grounds--written notice ofintention, effective when--served on whom.
361.262. 1. Whenever it shall appear to the director, from anyexamination made by him or his examiners, that any director, officer, orany other person participating in the conduct of the affairs of acorporation subject to this chapter has committed any violation of law orregulation or of a cease and desist order, or has violated any conditionimposed in writing by the director in connection with the grant of anyapplication or other request by such corporation or any written agreementbetween such corporation and the director, or has engaged or participatedin any unsafe or unsound practice in connection with the corporation, orhas committed or engaged in any act, omission, or practice whichconstitutes a breach of his fiduciary duty to the corporation, and thedirector determines that the corporation has suffered or will probablysuffer financial loss or other damage or that the interests of itsdepositors could be prejudiced by reason of such violation or practice orbreach of fiduciary duty, or that the director or officer or other personhas received financial gain by reason of such violation or practice orbreach of fiduciary duty, and such violation or practice or breach offiduciary duty is one involving personal dishonesty on the part of suchdirector, officer or other person, or one which demonstrates a willful orcontinuing disregard for the safety or soundness of the corporation, thedirector may serve upon such director, officer, or other person a writtennotice of his intention to remove him from office.
2. When it shall appear to the director from any examination made byhim or his examiners that any director or officer of a corporation subjectto this chapter, by conduct or practice with respect to another suchcorporation or any business institution which resulted in financial loss orother damage, has evidenced either his personal dishonesty or a willful orcontinuing disregard for its safety and soundness and, in addition, hasevidenced his unfitness to continue as a director or officer and wheneverit shall appear to the director that any other person participating in theconduct of the affairs of a corporation subject to this chapter, by conductor practice with respect to such corporation or other corporation or otherbusiness institution which resulted in financial loss or other damage, hasevidenced either his personal dishonesty or willful or continuing disregardfor its safety and soundness and, in addition, has evidenced his unfitnessto participate in the conduct of the affairs of such corporation, thedirector may serve upon such director, officer, or other person a writtennotice of intention to remove him from office or to prohibit his furtherparticipation in any manner in the conduct of the affairs of thecorporation or from any other banking, savings, or trust institutionsupervised by the director.
3. Whenever it shall appear to the director to be necessary for theprotection of any corporation or its depositors, he may, by written noticeto such effect served upon any director, officer, or other person referredto in subsection 1 or 2 of this section, suspend him from office orprohibit him from further participation in any manner in the conduct of theaffairs of the corporation. Such suspension or prohibition shall becomeeffective upon service of such notice and shall remain in effect pendingthe completion of the administrative proceedings pursuant to the noticeserved under subsection 1 or 2 of this section and until such time as thedirector shall dismiss the charges specified in such notice or, if an orderof removal or prohibition is issued against the director or officer orother person, until the effective date of any such order. Copies of anysuch notice shall also be served upon the corporation of which he is adirector or officer or in the conduct of whose affairs he has participated.
4. Except as provided in subsection 5 of this section, any personwho, pursuant to an order issued under this section, has been removed orsuspended from office in a corporation or prohibited from participating inthe conduct of the affairs of a corporation may not, while such order is ineffect, continue or commence to hold any office in, or participate in anymanner in, the conduct of the affairs of any other corporation subject tothe provisions of this chapter.
5. If, on or after the date an order is issued under this sectionwhich removes or suspends from office any person or prohibits such personfrom participating in the conduct of the affairs of a corporation, suchparty receives the written consent of the director, subsection 4 of thissection shall, to the extent of such consent, cease to apply to such personwith respect to the corporation described in the written consent and thedirector shall publicly disclose such consent. Any violation of subsection4 of this section by any person who is subject to an order described insuch subsection shall be treated as a violation of the order.
(L. 1985 H.B. 408 § 361.265 subsecs. 1, 2, 3, A.L. 1988 H.B. 1204, A.L. 1990 H.B. 1456, A.L. 2005 H.B. 707)