Order requiring removal of director, officer or employee; petition by person affected; injunction prohibiting participation in affairs of company.
1. If the Commissioner determines that a director, officer or employee of a bank holding company has been negligent, dishonest, reckless or incompetent in connection with his duties, the Commissioner may issue a written order requiring the person to be removed from his position.
2. The person affected by the order of the Commissioner may petition the district court for the judicial district in which the bank holding company is located to set aside the order. The court may affirm, modify or set aside the order.
3. If a director, officer or employee is not removed in accordance with an order of the Commissioner and the Commissioner has reasonable cause to believe that the continued participation of the person in the affairs of the bank holding company will place it in an unsafe or unsound condition, the Commissioner may apply to the district court for the judicial district in which the bank holding company is located for a temporary restraining order and an injunction prohibiting the person from participating in the affairs of the bank holding company.
Last modified: February 26, 2006