§ 1173 Commissioner Bank Director Election Challenge

Financial Code·California

AI SummaryVerified

This law lets the state commissioner step in, just like a bank shareholder, to question whether a bank director was properly elected or appointed.

Key Takeaways

•The commissioner can bring a lawsuit or join one about a bank director’s election or appointment.
•The commissioner’s rights are the same as a shareholder’s in that kind of case.
•The action is taken under Section 709 of the Corporations Code.

Example

A bank appoints a new director, but some people think the appointment broke the rules.

The commissioner can file a lawsuit or join an existing one to decide if the director’s appointment was legal, just as a shareholder could.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1173 Commissioner Bank Director Election Challenge

The commissioner may, in the name of the people of this state, bring or intervene in an action under Section 709 of the Corporations Code to determine the validity of any election or appointment of any director of a bank to the same extent as a shareholder of such bank might bring such an action. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 10, 2026

Key Terms

commissioner election or appointment director of a bank Section 709 of the Corporations Code

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1173.

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Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

References