Statutes, codes, and regulations
Laws of Puerto Rico
TITLE SEVEN BankingPART III. Other Financial InstitutionsChapter 86. Cooperative Savings and Credit Associations Act of 2002
Subchapter V. Assemblies, Board of Directors and Committees
§ 1365w. Directors and committee members—Power to remove

P.R. Laws tit. 7, § 1365w

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2019-02-20 00:00:00+00
§ 1365w. Directors and committee members—Power to remove

(a) When the Corporation has grounds to believe that any member of the Board or an officer thereof, or any member of the other boards of directors, or any executive officer or employee of a cooperative has incurred one of the causes for removal established in § 1365t of this title, he/she shall raise charges against same, pursuant to the provisions of § 1334q of this title. The order to show cause may provide for the provisional release from functions of the person thus affected. The administrative procedure initiated by the Corporation pursuant to this section shall give strict compliance to the provisions of the Organic Act of the Corporation.

(b) Every person who is permanently removed from office as a member of the Board or as an official thereof, or as a member of any of the other boards of directors, or as executive official of a cooperative shall be impeded from being elected, designated, appointed or contracted to hold any office, or be employed in any other cooperative, except by requesting and receiving the approval of the Corporation.

(c) In the case of a cooperative that is under receivership, liquidation, involuntary fusion, sale of assets, a cease and desist order, or any other government intervention that exceeds one (1) year, any person who during the three (3) years prior to the intervention, has held the office of director, member of the supervision committee or executive officer [for at least six (6) months] shall be barred from being elected, designated, appointed or contracted to hold any office or employment in any other cooperative, unless he/she requests and obtains the prior approval of the Corporation. At the moment that the cooperative is audited by the Corporation, it shall grant the directors, members of the supervision committee and executive officials covered by this subsection, a reasonable opportunity to show their diligence in discharging their functions, and thus obtain the authorization to hold any office or employment in any other cooperative.

History —Oct. 28, 2002, No. 255, § 5.24.