§ 54C-82. Removal of directors, officers, and employees.
§ 54C‑82. Removal ofdirectors, officers, and employees.
(a) If, in theCommissioner of Banks' opinion, one or more directors, officers, or employeesof a savings bank has participated in or consented to any violation of thisChapter, or any other law, rule, or order, or any unsafe or unsound businesspractice in the operation of any savings bank; or any insider loan notspecifically authorized by or under this Chapter; or any repeated violation ofor failure to comply with any savings bank's bylaws, the Commissioner of Banksmay serve a written notice of charges upon the director, officer, and employeein question, and the savings bank, stating the Commissioner of Banks' intent toremove the director, officer, or employee. The notice shall specify the conductand place for the hearing before the Commission to be held. A hearing shall beheld no earlier than 15 days and no later than 30 days after the notice ofcharges is served, and it shall comply with Article 3A of Chapter 150B of theGeneral Statutes. If, after the hearing, the Commission determines that thecharges asserted have been proven by a preponderance of the evidence, theCommissioner of Banks may issue an order removing the director, officer, oremployee in question. The order is effective upon issuance and may include theentire board of directors or all of the officers of the savings bank.
(b) If it is determinedthat a director, officer, or employee of a savings bank has knowinglyparticipated in or consented to any violation of this Chapter, or any otherlaw, rule, or order, or engaged in any unsafe or unsound business practice inthe operation of any savings bank, or any repeated violation of or failure tocomply with any savings bank's bylaws, and that as a result, a situation existsrequiring immediate corrective action, the Commissioner of Banks may issue anorder temporarily removing the person pending a hearing. The order shall stateits duration on its face and the words, "Temporary Order of Removal,"and is effective upon issuance, for a period of 15 days, and may be extendedonce for a period of 15 days. A hearing shall be held within 10 days of theexpiration of a temporary order, or any extension thereof, at which time atemporary order may be dissolved or converted to a permanent order.
(c) Any removal undersubsections (a) or (b) of this section is effective in all respects as if theremoval had been made by the board of directors and the members or thestockholders of the savings bank in question.
(d) Without the priorwritten approval of the Commissioner of Banks, no director, officer, oremployee permanently removed under this section shall be eligible to beelected, reelected, or appointed to any position as a director, officer, oremployee of that savings bank, nor shall that director, officer, or employee beeligible to be elected to or retain a position as a director, officer, oremployee of any other State savings bank. (1991, c. 680, s. 1; 2001‑193, s. 16.)