§ 11-109-604 — Removal of director, officer, or other person

Colorado § 11-109-604

• Jurisdiction: Colorado
• Title 11: Financial
• Art.: Trust Companies

Text

(1) The banking
board may serve any executive officer, director, employee, agent, or other person
participating in the conduct of the affairs of a trust company with a written notice
of its intention to remove the person from office whenever the banking board
determines:

(a) That any such person has committed any violation of this article, a rule of
the banking board, or a cease-and-desist order of the banking board that has
become final; has engaged or participated in any unsafe or unsound practice in
connection with a trust company; or has committed or engaged in any act, omission,
or practice that constitutes a breach of fiduciary duty to the trust company; and

(b) (I) That the trust company has suffered or probably will suffer substantial
financial loss or other damage or that the interests of its customers could be
seriously prejudiced by reason of such violation or practice or breach of fiduciary
duty or offense; or

(II) That such person has received financial gain by reason of such violation,
practice, breach of fiduciary duty, or offense; or

(III) That such violation is one involving personal dishonesty on the part of
such person or one that demonstrates a willful or continuing disregard for the
safety or soundness of the trust company.

(2) Whenever the banking board determines that an executive officer,
director, employee, agent, or other person participating in the conduct of the affairs
of a trust company, by conduct or practice with respect to another trust company or
business institution that results in substantial financial loss or other damage, has
evidenced either personal dishonesty or a willful or continuing disregard for the
trust company's safety and soundness, and, in addition, has evidenced unfitness to
continue the person's relationship with the trust company, the banking board may
serve upon the person a written notice of its intention to remove the person from
office or to prohibit such person's further participation in any manner in the conduct
of the affairs of any Colorado state-chartered trust company or bank.

(3) A notice of intention to remove a director, executive officer, or other
person from office or to prohibit such person's participation in the conduct of the
affairs of a trust company must contain a statement of the facts constituting
grounds for removal and must fix a time and place at which a hearing shall be held
thereon. Such hearing shall be fixed for a date not earlier than thirty days nor later
than sixty days after the date of service of such notice, unless an earlier or a later
date is set by the banking board at the request of such director or executive officer
or other person and for good cause shown. Unless such director, executive officer,
or other person appears at the hearing in person or by a duly authorized
representative, the person shall be deemed to have consented to the issuance of an
order of removal or prohibition as specified in the notice issued pursuant to
subsection (1) or (2) of this section. In the event of such consent or, if, upon the
record made at any such hearing, the banking board finds that any of the grounds
specified in such notice have been established, the banking board may issue such
orders of suspension or removal from office as it may deem appropriate. Any such
order shall become effective at the expiration of thirty days after service upon such
trust company and the director, executive officer, or other person concerned
except in the case of an order issued upon consent, which shall become effective at
the time specified therein. Such order remains effective and enforceable except to
such extent as it is stayed, modified, terminated, or set aside by action of the
banking board or a reviewing court.

Legislative History

Source: L. 2003: Entire article added with relocations, p. 1194, � 3, effective July 1. L. 2013: (2) amended, (SB 13-154), ch. 282, p. 1483, � 52, effective July 1. L. 2024: IP(1), (2), and (3) amended, (HB 24-1351), ch. 461, p. 3207, � 35, effective August 7.