6.2-865 - (Effective October 1, 2010) Removal of director or officer; appeals; penalty.
§ 6.2-865. (Effective October 1, 2010) Removal of director or officer;appeals; penalty.
A. Whenever any director or officer of a bank doing business in theCommonwealth shall continue (i) to violate any law relating to such bank or(ii) unsafe or unsound practices in conducting the business of such bank,after the director or officer, and the board of directors of the bank ofwhich he is a director or officer, have been warned in writing by theCommissioner to discontinue such violation of law or such unsafe or unsoundpractices, the Commissioner shall certify the facts to the Commission. TheCommission shall thereupon enter an order requiring such director or officerto appear before the Commission, within not less than 10 days, to show causewhy he should not be removed from office and thereafter restrained fromparticipating in any manner in the management of such bank. Such order shallcontain a brief statement of the facts certified to the Commission by theCommissioner. A copy of such order shall be served upon such director orofficer, and a copy thereof shall be sent by registered mail to each directorof the bank affected.
B. If, after granting the accused director or officer a reasonableopportunity to be heard, the Commission shall find that he has continued toviolate any law relating to such bank or has continued unsafe or unsoundpractices in conducting the business of such bank after he and the board ofdirectors of the bank of which he is a director or officer have been warnedas provided in subsection A, the Commission shall enter an order removingsuch director or officer from office and restraining such director or officerfrom thereafter participating in any manner in the management of such bank. Acopy of such order shall be served upon such director or officer. A copy ofsuch order shall also be served upon the bank of which he is a director orofficer. Upon such removal, the director or officer shall cease to be adirector or officer of such bank and thereafter shall cease to participate inany manner in the management of such bank.
C. Any director or officer aggrieved by (i) an order of the Commissionentered under subsection B or (ii) an order refusing to remove anotherdirector or officer from office and to restrain him from participating in themanagement of the bank, shall have, of right, an appeal to the Supreme Courtof Virginia within 60 days from the date of the order.
D. Any director or officer removed and restrained under the provisions ofsubsection B from participating in any manner in the management of any bankof which he is a director or officer, and who thereafter participates in anymanner in the management of such bank except as a stockholder therein, isguilty of a Class 6 felony.
(Code 1950, §§ 6-40, 6-41, 6-42; 1966, c. 584, §§ 6.1-49, 6.1-50, 6.1-51;1979, c. 58; 1992, c. 136; 2010, c. 794.)