Opinion ID: 1142705
Heading Depth: 1
Heading Rank: 5

Heading: gray qua usb's officer

Text: The Chancery Court found Gray was an officer of USB from and after July 2, 1984, and by reason thereof owed certain duties to USB, some of which are fiduciary in nature. This holding is the cornerstone of the legal analysis which led ultimately to judgment against Gray. Gray argues that the Court erred in this, pointing to the fact that he was certainly not an officer in the sense that USB's Board of Directors had elected him. Gray insists rather that he was a mere salaried employee. The law devolves upon those in the upper echelons of a corporate entity certain duties owing to the entity, over and above those of an ordinary agent or employee, and the question is whether Gray was one of those so burdened. We doubt a definitional line may be drawn with precision or permanence. For the moment, we are prepared to accept that Officer means (a) the chief executive, operating, financial, legal and accounting officers of a corporation; (b) to the extent not encompassed by the foregoing, the chairman of the board of directors . .., president, treasurer, and secretary, and a vice-president or vice-chairman who is in charge of a principal business unit, division, or function . .. and (c) any other individual designated by the corporation as an officer. American Law Institute, Principles of Corporate Governance: Analysis and Recommendations, § 1.27 (Proposed Final Draft 1992) (emphasis added) (hereinafter Principles of Corporate Governance, § ____); see also, Hill v. Southeastern Floor Covering Company, Inc., 596 So.2d 874, 876 (Miss. 1992). His title aside, Gray served USB from and after July 2, 1984, as the chief operating official at the Branch where he had substantial discretionary authority. We think a banking office such as the Branch as one of USB's principal business units. Of those on the scene, Gray was the man in charge. He presided over a branch worth over twenty million dollars, had substantial loan authority, and had considerable autonomy in directing the day-to-day operations of the branch. The Court below was correct in treating Gray as an officer of USB.