N.Y. Banking Law Section 7017
Actions against directors and officers for misconduct

1.

An action may be brought against one or more directors or officers of a corporation to procure a judgment for the following relief:

(a)

To compel the defendant to account for his official conduct in the following cases:

(1)

The neglect of, or failure to perform, or other violation of his duties in the management and disposition of corporate assets committed to his charge.

(2)

The acquisition by himself, transfer to others, loss or waste of corporate assets due to any neglect of, or failure to perform, or other violation of his duties.

(b)

To set aside an illegal conveyance, assignment or transfer of corporate assets, where the transferee knew of its illegality.

(c)

To enjoin a proposed illegal conveyance, assignment or transfer of corporate assets, where there is sufficient evidence that it will be made.

2.

Subject to § 631 (Actions against directors, trustees, managers or officers for violation of their official duties)section six hundred thirty-one of this chapter, an action may be brought for the relief provided in this section and in subdivision one of section seven thousand sixteen by a corporation, or a receiver, trustee in bankruptcy, officer, director or judgment creditor thereof, or, under section six thousand twenty-five, by a stockholder or the owner of a beneficial interest in shares thereof.

3.

This section shall not affect any liability otherwise imposed by law upon any director or officer.

Source: Section 7017 — Actions against directors and officers for misconduct, https://www.­nysenate.­gov/legislation/laws/BNK/7017 (updated Sep. 22, 2014; accessed Jan. 18, 2025).

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Accessed:
Jan. 18, 2025

Last modified:
Sep. 22, 2014

§ 7017’s source at nysenate​.gov

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