Regulatory Alerts2005-04-11
Conduct of Directors and Officers
The Louisiana Commissioner of Financial Institutions mandates specific fiduciary standards and conduct rules for directors and officers of savings banks. The statute prohibits conflicts of interest unless transactions are conducted in good faith, fully disclosed to the board, and formally approved with interested directors abstaining. Additional restrictions limit dual directorships in contiguous parishes, cap remuneration to reasonable fees, prohibit tying arrangements for loans, safeguard proxy voting rights, and authorize board indemnification subject to regulatory approval.
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