CODE OF VIRGINIA

REMOVAL OF DIRECTOR OR OFFICER; APPEALS; PENALTY (§ 6.2-1052)

A. Whenever any director or officer of a trust subsidiary doing business in the
Commonwealth, shall have continued to violate any law relating to such trust
subsidiary or shall have continued unsafe or unsound practices in conducting the
business of such trust subsidiary, after the director or officer, and the board
of directors of the trust subsidiary of which he is a director or officer, have
been warned in writing by the Commissioner to discontinue such violation of law
or such unsafe or unsound practices, the Commissioner shall certify the facts to
the Commission. The Commission shall thereupon enter an order requiring such
director or officer to appear before the Commission, within not less than 10
days, to show cause why he should not be removed from office and thereafter
restrained from participating in any manner in the management of such trust
subsidiary. Such order shall contain a brief statement of the facts certified to
the Commission by the Commissioner. A copy of such order shall be served upon
such director or officer, and a copy thereof shall be sent by registered mail to
each director of the trust subsidiary affected.

B. If, after granting the accused director or officer a reasonable opportunity
to be heard, the Commission shall find that he has continued to violate any law
relating to such trust subsidiary, or has continued unsafe or unsound practices
in conducting the business of such trust subsidiary, after he and the board of
directors of the trust subsidiary of which he is a director or officer have been
warned in writing by the Commissioner to discontinue such violation of law or
unsafe or unsound practices, the Commission shall enter an order removing such
director or officer from office and restraining such director or officer from
thereafter participating in any manner in the management of such trust
subsidiary. A copy of such order shall be served upon such director or officer.
A copy of such order shall also be served upon the trust subsidiary of which he
is a director or officer. Upon such removal the director or officer shall cease
to be a director or officer of such trust subsidiary and thereafter cease to
participate in any manner in the management of such trust subsidiary.

C. Any director or officer aggrieved by (i) any order of the Commission entered
under subsection B or (ii) an order refusing to remove another director or
officer from office or to restrain him from participating in the management of
the trust subsidiary, shall have, of right, an appeal to the Supreme Court of
Virginia within 60 days from the date of the order.

D. Any director or officer removed or restrained under the provisions of
subsection B from participating in any manner in the management of any trust
subsidiary of which he is a director or officer, and who thereafter participates
in any manner in the management of such trust subsidiary except as a stockholder
therein, is guilty of a Class 6 felony.

HISTORY: Code 1950, §§ 6-40, 6-41, 6-42; 1966, c. 584, §§ 6.1-49, 6.1-50,
6.1-51; 1974, c. 665, § 6.1-51.1; 1979, c. 58; 1992, c. 136; 2010, c. 794.