Missouri § 361.262 - Removal or suspension from office, grounds — written notice of intention, effective when — served on whom.

§ 361.262. Removal or suspension from office, grounds — written notice of intention, effective when — served on whom.

1.  Whenever it shall appear to the director, from any examination or investigation made by the director or the director's examiners, that:

(1)  Any director, officer, or any other person participating in the conduct of the affairs of a corporation subject to this chapter has:

(a)  Violated a law or regulation;

(b)  Violated a cease and desist order;

(c)  Violated any director-imposed written condition in connection with the grant of any application or other request by such corporation;

(d)  Violated any written agreement between such corporation and the director;

(e)  Engaged or participated in any unsafe or unsound practice in connection with the corporation; or

(f)  Committed or engaged in any act, omission, or practice that constitutes a breach of his or her fiduciary duty to the corporation; and

(2)  The director determines that:

(a)  The corporation has suffered or will probably suffer financial loss or other damage;

(b)  The interests of its depositors, beneficiaries, or other customers could be prejudiced by reason of such violation or practice or breach of fiduciary duty; or

(c)  The director or officer or other person has received financial gain by reason of such violation or practice or breach of fiduciary duty; and

(3)  The director determines that such violation or practice or breach of fiduciary duty is:

(a)  One involving personal dishonesty on the part of such director, officer or other person; or

(b)  One that demonstrates a willful or continuing disregard for the safety or soundness of the corporation;

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2.  When it shall appear from any examination or investigation to the director  that any director or officer of a corporation subject to this chapter, by conduct or practice with respect to another such corporation or any business that:

(1)  Resulted in financial loss or other damage;

(2)  Evidenced either:

(a)  His or her personal dishonesty; or

(b)  A willful or continuing disregard for its safety and soundness; and

(3)  Evidenced his or her unfitness to continue as a director or officer,

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3.  When it shall appear from any examination or investigation to the director that any person participating in the conduct of the affairs of a corporation subject to this chapter, by conduct or practice with respect to such corporation or other corporation or other business institution that:

(1)  Resulted in financial loss or other damage, has

(2)  Evidenced either:

(a)  His or her personal dishonesty; or

(b)  A willful or continuing disregard for its safety and soundness; and

(3)  Evidenced his or her unfitness to participate in the conduct of the affairs of such corporation,

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4.  Whenever it shall appear to the director to be necessary for the protection of any corporation or its depositors, beneficiaries, or other customers, the director may, by written notice to such effect served upon any director, officer, or other person referred to in subsections 1 to 3 of this section, suspend him or her from office or prohibit him or her from further participation in any manner in the conduct of the affairs of the corporation.  Such suspension or prohibition shall become effective upon service of such notice and shall remain in effect pending the completion of the administrative proceedings pursuant to the notice served under subsections 1 to 3 of this section and until such time as the director shall dismiss the charges specified in such notice or, if an order of removal or prohibition is issued against the director or officer or other person, until the effective date of any such order.  Copies of any such notice shall also be served upon the corporation of which he or she is a director or officer or in the conduct of whose affairs he or she has participated.

5.  Except as provided in subsection 6 of this section, any person who, pursuant to an order issued under this section, has been removed or suspended from office in a corporation or prohibited from participating in the conduct of the affairs of a corporation may not, while such order is in effect, continue or commence to hold any office in, or participate in any manner in, the conduct of the affairs of any other corporation subject to the provisions of this chapter.

6.  If, on or after the date an order is issued under this section that removes or suspends from office any person or prohibits such person from participating in the conduct of the affairs of a corporation, such party receives the written consent of the director, subsection 5 of this section shall, to the extent of such consent, cease to apply to such person with respect to the terms and conditions described in the written consent and the director shall publicly disclose such consent.  Any violation of subsection 5 of this section by any person who is subject to an order described in such subsection shall be treated as a violation of the order.

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(L. 1985 H.B. 408 § 361.265 subsecs. 1, 2, 3, A.L. 1988 H.B. 1204, A.L. 1990 H.B. 1456, A.L. 2005 H.B. 707, A.L. 2023 S.B. 13)

---- end of effective  28 Aug 2023 ----

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