P.R. Laws tit. 7, § 1334q
(a) When there are probable grounds to believe that a member of the Board of Directors, committee member, chief executive officer or other employee of an insured cooperative has committed a violation or is violating any law with respect to said entity, or has pursued inadequate practices in the management of the business, the Corporation shall file charges against said member of the Board of Directors, committee member, chief executive officer, or other employee, and shall require him/her to appear before the representative designated by the Corporation, within the term and pursuant to the procedure established through regulations, to show cause for which he/she should not be removed. In any case involving the filing of charges against the chief executive officer, an order shall be issued against the Board of Directors to show cause for which it should not be determined that it has failed to comply with its supervisory function of management.
(b) A copy of the notice of charges shall be remitted by certified mail with acknowledgment of receipt to each member of the Board of Directors of the insured cooperative involved.
(c) If the Corporation should determine, after granting a reasonable opportunity to the person charged to be heard and to present evidence to support his/her cause, that he/she has violated a law with respect to said cooperative or has engaged in inadequate practices in the management of the business of said institution, it may direct that said person be dismissed from office.
(d) The Corporation shall remit a copy of the dismissal order to the person thus affected and another copy to the entity of which he/she is a member of the Board of Directors, a committee member, chief executive officer or other employee, to be submitted immediately to the Board of Directors of said entity. In such case, said member of the Board of Directors, committee member, chief executive officer or other employee, shall cease in office or employment immediately upon receipt of the notice of the order of the Corporation.
(e) The order and the findings of fact and conclusions of law on which said order is based shall not be made public nor disclosed to anyone with the exception of the person charged and the directors of the Cooperative concerned, except when by determination of two thirds (2 / 3) of the Board of Directors of the Corporation, it is determined that said disclosure would be convenient to the best interests of the cooperative movement, or in the context of a judicial review requested as provided in this chapter.
(f) No member of the Board of Directors, committee member, chief executive officer or other employee who has been removed from office as provided in this section, shall in any way, subsequently participate in the administration or direction of any cooperative without prior authorization of the Corporation.
History —Aug. 17, 2001, No. 114, § 19.