§ 7017 — Actions against directors and officers for misconduct

New York § 7017

• Jurisdiction: New York
• Law BNK: Banking
• Title 7: Directors and Officers
• Art. 15: General Provisions Applicable to Banking Stock Corporations, Limited Liability Investment Companies, and Limited Liability Trust Companies

Text

§ 7017. Actions against directors and officers for misconduct. 1. An\naction may be brought against one or more directors or officers of a\ncorporation to procure a judgment for the following relief:\n (a) To compel the defendant to account for his official conduct in the\nfollowing cases:\n (1) The neglect of, or failure to perform, or other violation of his\nduties in the management and disposition of corporate assets committed\nto his charge.\n (2) The acquisition by himself, transfer to others, loss or waste of\ncorporate assets due to any neglect of, or failure to perform, or other\nviolation of his duties.\n (b) To set aside an illegal conveyance, assignment or transfer of\ncorporate assets, where the transferee knew of its illegality.\n (c) To enjoin a proposed illegal conveyance, assignment or transfer of\ncorporate assets, where there is sufficient evidence that it will be\nmade.\n 2. Subject to section six hundred thirty-one of this chapter, an\naction may be brought for the relief provided in this section and in\nsubdivision one of section seven thousand sixteen by a corporation, or a\nreceiver, trustee in bankruptcy, officer, director or judgment creditor\nthereof, or, under section six thousand twenty-five, by a stockholder or\nthe owner of a beneficial interest in shares thereof.\n 3. This section shall not affect any liability otherwise imposed by\nlaw upon any director or officer.\n