New York Banking Law

Sec. § 41
Removal of Director, Trustee or Officer


1.

Whenever the superintendent shall find that any director, trustee or officer of any corporate banking organization or bank holding company (as such term “bank holding company” is defined in article three-A of this chapter) or any person or persons in charge of, or any officer of, a branch of a foreign banking corporation has violated any law or duly enacted regulation of the superintendent of financial services relating to such corporation, or has continued unauthorized or unsafe practices in conducting the business of such corporation after having been ordered or warned by the superintendent to discontinue such practices, the superintendent may, in his discretion, certify the facts to the board. The board shall cause notice to be served upon such director, trustee, officer or person in charge of, or officer of, a branch of a foreign banking corporation either personally or, upon a finding that he cannot be served personally within the state, by registered mail, at his address last known to the superintendent, to appear before such board to show cause why he should not be removed from office. A copy of such notice shall be sent by registered mail to each director or trustee of the banking organization and to each person in charge of and each officer of a branch of the foreign banking corporation affected. If, after granting the accused director, trustee, officer or person in charge of, or officer of, a branch of a foreign banking corporation a reasonable opportunity to be heard, the board by a three-fifths vote of all its members finds that he has violated any law or duly enacted regulation of the board relating to such corporation, or has continued unauthorized or unsafe practices in conducting the business of such corporation after having been ordered or warned by the superintendent to discontinue such practices, the board, in its discretion, by a three-fifths vote of all its members, may order that such director, trustee, officer or person in charge of, or officer of, a branch of a foreign banking corporation be removed from office.

2.

Upon service either personally or by registered mail at his address last known to the superintendent upon such director, trustee, officer or person in charge of, or officer of, a branch of a foreign banking corporation and upon the corporation of which he is a director, trustee, officer or, in case he is a person in charge of, or officer of, a branch of a foreign banking corporation upon such foreign banking corporation, of a copy of such order, he shall cease to be a director, trustee or officer of such banking organization or person in charge of, or officer of, a branch of a foreign banking corporation. Such order and the findings of fact upon which it is based shall not be made public or disclosed to anyone except the director, trustee or officer or person in charge of, or officer of, a branch of a foreign banking corporation involved and the directors or trustees of the corporation involved, except in connection with proceedings for a violation of this section. Any director, trustee or officer or any person or persons in charge of, or any officer of, a branch of a foreign banking corporation so removed from office who thereafter without permission of the board participates in any manner in the management of such banking organization or of a branch of such foreign banking corporation shall be guilty of a misdemeanor.
Source

Last accessed
Dec. 13, 2016