2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365u - Directors and committee members—Procedures for removal

(a) The members of the Boards of Directors may be removed from office as provided below:
(1) By petition of the members. — Any member can initiate a procedure for removal against a director, by filing a written request stating the imputed charges, signed by five percent (5%) of all the members or by ten percent (10%) of the delegates.
(2) By petition of the directors. — Every director may initiate a procedure for removal against another director by filing a written request before the secretary or the president of the Board of Directors with a copy to the supervision committee that states the imputed charges, signed by two-thirds (2 / 3) of the remaining members of the Board.
Every petition for removal presented by the initiative of the members, delegates or Directors, shall be submitted to the consideration of the next general assembly, which may be extraordinarily convoked to such effects. Said assembly may remove the Director of the Board with the concurrent vote of the majority of the members or delegates present, as the case may be.
The member of the Board thus affected by the decision of the assembly to separate him/her from office shall have the right to submit a written petition to the next general assembly, which may be an extraordinary assembly convoked to such effect for the reconsideration of his/her removal. The decision of the assembly may be appealed before an arbitration panel as provided in Section 7.07 of this Act.
(b) Officials of the Board. — The officials of the Board may be removed from office by the majority vote of the members thereof, upon due notice of the grounds for which they are being removed from office. The decision of the Board shall be to the sole effect of relieving him/her from his/her functions as an official, and shall not have the effect of removing him/her as a member thereof, for which the provisions in subsection (a) of this section shall be observed in every case. The decision of the Board to separate one of the officials from his/her functions may be appealed before an arbitration panel, as provided in Section 7.07 of this Act.
(c) Committee members. — The committee members appointed by the Board may be removed from office upon prior notice of the charges that are imputed, and the holding of a hearing to which they may attend in person or accompanied by legal counsel. The decision to remove from office shall be to the sole effect of relieving him/her from the functions as a member of the committee, and shall not have the effect of removing him/her as a member of the Board, for which the provisions of subsection (a) of this section shall be observed in every case.
The decision of the Board to separate a member of a committee from office may be appealed before an arbitration panel, as provided in Section 7.07 of this Act.
History —Oct. 28, 2002, No. 255, § 5.22.