N.Y. Banking Law 7017 – Actions against directors and officers for misconduct
§ 7017. Actions against directors and officers for misconduct. 1. An action may be brought against one or more directors or officers of a corporation to procure a judgment for the following relief:
Terms Used In N.Y. Banking Law 7017
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means and includes all banks, trust companies, safe deposit companies, investment companies, mutual trust investment companies, and, to the extent not provided otherwise under any regulation of the superintendent of financial services promulgated pursuant to the provisions of section fourteen-e of this chapter, stock-form savings banks and stock-form savings and loan associations. See N.Y. Banking Law 1001
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Director: means any member of the governing board of a corporation, whether designated as director, trustee, manager, governor, or by any other title. See N.Y. Banking Law 1001
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Trustee: A person or institution holding and administering property in trust.
(a) To compel the defendant to account for his official conduct in the following cases:
(1) The neglect of, or failure to perform, or other violation of his duties in the management and disposition of corporate assets committed to his charge.
(2) The acquisition by himself, transfer to others, loss or waste of corporate assets due to any neglect of, or failure to perform, or other violation of his duties.
(b) To set aside an illegal conveyance, assignment or transfer of corporate assets, where the transferee knew of its illegality.
(c) To enjoin a proposed illegal conveyance, assignment or transfer of corporate assets, where there is sufficient evidence that it will be made.
2. Subject to section six hundred thirty-one of this chapter, an action may be brought for the relief provided in this section and in subdivision one of section seven thousand sixteen by a corporation, or a receiver, trustee in bankruptcy, officer, director or judgment creditor thereof, or, under section six thousand twenty-five, by a stockholder or the owner of a beneficial interest in shares thereof.
3. This section shall not affect any liability otherwise imposed by law upon any director or officer.