6.1-49 - (Repealed effective October 1, 2010) Removal of director or officer. - Virginia Statutes

§ 6.1-49. (Repealed effective October 1, 2010) Removal of director or officer.

Whenever any director or officer of a bank doing business in thisCommonwealth, shall have continued to violate any law relating to such bankor shall have continued unsafe or unsound practices in conducting thebusiness of such bank, after the director or officer, and the board ofdirectors of the bank of which he is a director or officer, have been warnedin writing by the Commissioner of Financial Institutions to discontinue suchviolation of law or such unsafe or unsound practices, the Commissioner shallcertify the facts to the State Corporation Commission. The State CorporationCommission shall thereupon enter an order requiring such director or officerto appear before the Commission, within not less than ten 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.

If after granting the accused director or officer a reasonable opportunity tobe heard the Commission shall find that he has continued to violate any lawrelating to such bank, or has continued unsafe or unsound practices inconducting the business of such bank, after he and the board of directors ofthe bank, of which he is a director or officer have been warned in writing bythe Commissioner to discontinue such violation of law or unsafe or unsoundpractices, the Commission shall enter an order removing such director orofficer from office and restraining such director or officer from thereafterparticipating in any manner in the management of such bank. A copy of suchorder shall be served upon such director or officer. A copy of such ordershall also be served upon the bank of which he is a director, or officer,whereupon such director or officer shall cease to be a director or officer ofsuch bank and thereafter cease to participate in any manner in the managementof such bank.

(Code 1950, § 6-40; 1966, c. 584; 1979, c. 58.)