Authority of Commissioner to order discontinuance of unlawful or unsafe practices; special meetings of directors concerning noncompliance.
1. If the Commissioner finds as the result of any examination or from any report made to him or to any association doing business in this state or from any report made to any of its investors that the association is violating the provisions of its articles of incorporation, charter, bylaws, or any law of this state, or is conducting its business in an unsafe or injurious manner, he may by an order addressed to such association direct a discontinuance of such violations or unsafe or injurious practices and a conformity with all the requirements of law.
2. If an association does not comply with such order, the Commissioner may order the corporate secretary to call a special directors’ meeting to consider the matter of noncompliance.
3. The meeting must be held no later than 60 days after issuance of the order to hold the meeting, unless otherwise restrained by court order or by the board. The business of the meeting must be limited to the matter of noncompliance and remedies therefor and the notice of such meeting must set forth in detail the Commissioner’s discontinuance order and order to call a directors’ meeting.
4. Action taken at the meeting is binding upon the officers of the association.
Last modified: February 26, 2006