Pursuant to Section 28-A of the
Central Bank Act, a conservator, once appointed, takes over the management of
the bank and assumes exclusive powers to oversee every aspect of the bank's
operations and affairs. However, it must be stressed that a bank retains its
juridical personality even if placed under conservatorship; it is neither
replaced nor substituted by the conservator. Hence, the approval of the CB is
not necessary where the action was instituted by the bank through the majority
of the bank's stockholders.
The following
requisites, therefore, must be present before the order of conservatorship may
be set aside by a court:
1. The
appropriate pleading must be filed by the stockholders of record representing
the majority of the capital stock of the bank in the proper court;
2. Said pleading
must be filed within ten (10) days from receipt of notice by said majority
stockholders of the order placing the bank under conservatorship; and
3. There must be
convincing proof, after hearing, that the action is plainly arbitrary and made
in bad faith
No comments:
Post a Comment