04 NCAC 16D .0101. COMPOSITION OF BOARD OF DIRECTORS

(a)  Requirements for the composition of a board of directors are as follows:

(1)           Except in the case of a savings institution having 80 percent or more of any class of voting shares owned by a holding company or controlling person, no more than one‑third of the Board of Directors shall be salaried officers or employees of the savings institution, or of any subsidiary or  any holding company or affiliate thereof or any controlling person affiliate thereof.

(2)           In the case of a savings institution having 80 percent or more of any class of voting shares owned by a holding company or controlling person, no more than 49 percent of the Board of Directors shall be salaried officers or employees of the savings institution, or of any subsidiary or any holding company or affiliate thereof or any controlling person affiliate thereof.

(3)           No more than two directors shall be members of the same immediate family.

(4)           No two directors who are attorneys may be members of the same law firm.

(5)           No more than one‑third of the Board of Directors shall be directors, officers or employees of a competing financial institution.

(6)           The managing officer of the savings institution shall be a member of the Board of Directors.

(b)  A director shall not vote on any matter in which he has a personal or financial interest.

(c)  When a savings institution takes action resulting in the establishment of a new chief executive officer or director, the savings institution shall notify the Administrator in writing in advance of such change, and shall provide the name of the new chief executive officer or director, the effective date of the appointment, and a statement of the person's past and current business and professional affiliations.  The name of any departing chief executive officer or director shall also be provided.

 

History Note:        Authority G.S. 54B‑55;

Eff. August 31, 1981;

Amended Eff. April 15, 1993; February 15, 1992; July 1, 1990; September 1, 1984.