Failure to remove person pursuant to order conclusive evidence of negligence. If the board of directors of a bank holding company neglects or refuses to remove a person pursuant to an order of the Commissioner and the company subsequently incurs losses because of that person’s activities, the written order of the Commissioner is conclusive evidence, in any action against the directors or a director for recovery of those losses, of the negligence of the directors in failing to act upon the order.
Last modified: February 26, 2006