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#2008662 - 04/16/15 09:26 PM What reg requires BOD to own min amount of stock
soundbank Offline
Junior Member
Joined: Mar 2012
Posts: 44
Hello,
I have an audit step in my shareholders' equity audit program that states

"Confirm that directors comply with the state and national bank regulations requiring directors to own "in their own right" minimum amounts of stock."

I have not been able to find any clear guidance on this - any ideas? I have reviewed the State Code of Laws & Regs with no luck, and FDIC as well. I don't see specific numbers anywhere.

Any comments/suggestions are much appreciated.

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#2008667 - 04/16/15 09:31 PM Re: What reg requires BOD to own min amount of stock soundbank
EdOils Offline
Platinum Poster
EdOils
Joined: Jan 2004
Posts: 553
Louisiana
That would be a state law. Louisiana used to have a law that said that directors had to own at least $5,000 worth of stock. They have since removed that requirement.

I wouldn't worry much about that one unless you have new directors on the Board. If no one is new since your last state exam and there has been no stock sales from the directors, then you are probably ok.
_________________________
You gain education by reading the fine print. You gain experience by not.

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#2008736 - 04/17/15 02:44 PM Re: What reg requires BOD to own min amount of stock soundbank
osucpa Offline
Diamond Poster
Joined: May 2011
Posts: 1,400
Where did you get the audit program?

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#2008745 - 04/17/15 03:16 PM Re: What reg requires BOD to own min amount of stock osucpa
soundbank Offline
Junior Member
Joined: Mar 2012
Posts: 44
The audit program comes from Thomson Reuters Checkpoint

If you google search the step you will get a pdf version of the audit program.

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#2008757 - 04/17/15 03:41 PM Re: What reg requires BOD to own min amount of stock soundbank
osucpa Offline
Diamond Poster
Joined: May 2011
Posts: 1,400
We use a third party verdor for our audit programs but they still have to be tweeked for situations that do not apply to us. I would not take every step as gospel.

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