26-508 REMOVAL OF DIRECTORS, OFFICERS, OR EMPLOYEES. - Idaho Statutes

TITLE 26

BANKS AND BANKING

CHAPTER 5

BANK HOLDING COMPANIES

26-508. Removal of directors, officers, or employees. Any director, officer or employee of any bank holding company found by the director to be negligent, dishonest, reckless or incompetent, in his official duties shall be removed from office by the board of directors of such bank holding company on the written order of the director, and if the directors neglect or refuse to remove such director, officer, or employee, in the event any losses accrue to such bank holding company thereafter by reason of the negligence, dishonesty, recklessness or incompetency of such director, officer or employee, the written order of the director shall be deemed to be conclusive evidence of the negligence of the directors failing to act upon the same in any action brought against them, or any of them, for recovery of such losses. The directors [director], officer or employee affected by order of the director may petition the district court in the judicial district in which the bank is located to set aside the order of the director. Upon the filing of such petition the court shall have the jurisdiction to affirm, set aside, or modify the order of the director. If the directors fail to [or] neglect to remove such director, officer or employee, and the director of the department of finance has reasonable cause to believe that the continued participation in the affairs of the bank holding company by the director, officer or employee will place the bank holding company in an unsafe or unsound condition, the director of the department of finance may apply to the district court for a temporary restraining order and injunction preventing the participation of the director, officer or employee in the affairs of the bank holding company. The findings of the director as to the facts, if supported by substantial evidence, shall be conclusive that the bank holding company director, officer or employee who is the subject of an order for removal by the director is or has been negligent, dishonest, reckless or incompetent in the performance of his duties.