6.1-47 - (Repealed effective October 1, 2010) Directors must be stockholders.
§ 6.1-47. (Repealed effective October 1, 2010) Directors must be stockholders.
Every director of a bank incorporated under the laws of this Commonwealthshall be the owner in his sole name and have in his personal possession orcontrol shares of stock in such bank having a book value of not less than$5,000, calculated as of the last business day of the calendar yearimmediately preceding the election of the director. So long as a directorshall successively be reelected, there shall be no requirement to increasethe shares of stock owned according to this section. Such stock must beunpledged and unencumbered at the time such director becomes a director andduring the whole of his term as such.
When a bank is controlled by a bank holding company, a director may complywith the provisions of this section for each bank of which he is a directorby ownership, in similar manner, of shares of capital stock of the bankholding company having an aggregate book value equal to the book value ofshares of bank stock that he would be obligated to own under the precedingprovisions of this section.
A director of a bankers' bank as defined in § 6.1-6.1 shall not be requiredto own or control any shares of stock of such bankers' bank or any shares ofstock of a bank holding company that controls such bankers' bank.
For the purposes of this section the term "bank holding company" shall mean(i) a bank holding company as defined in § 6.1-4 or (ii) any corporationorganized under the laws of this Commonwealth and doing business in thisCommonwealth which owns all of the capital stock of one bank except thoseshares issued as directors' qualifying shares, where at least sixty-six andtwo-thirds percent of the assets of the holding company, computed on aconsolidated basis, consists of assets held by such bank and controlledsubsidiaries of such bank.
Any director violating the provisions of this section shall, immediately,vacate his office. The requirements of this section shall not apply to anyperson duly elected a director of a bank prior to July 1, 1995, or so long assuch person shall successively be reelected a director, and as to such personthe requirements of the law prior to such date shall apply.
(Code 1950, § 6-37; 1966, c. 584; 1970, c. 95; 1995, c. 63; 1996, cc. 25,218.)