Montana Attorney General Opinion 15-416

Opinion No. 416 Hanks and Banking-Superintendent of Banks, Powers of-Proxies-Voting Bank Stock. HELD: The Superintendent of Banks has no authority under the 'stat- ute to vote bank stock by proxy, and his doing so would be inconsistent with his duties as Superintendent and in yiolation of Section 5S, Chapter S9, Laws of 1927. January 5, 1934. You have submitted paragraph 6 of a contract made in connection with till' )Iontana Bank and Trust Company of Great }j'alls, Montana, being in the fol- lowing language: "6. 'While Mr. Brem- er's stock in the new bank is to be is- sued to him, it is to be deposited un- der a Trust Agreement to be aplll'o\'ed hy the Superintendent of Banks, with O1'l:\IO:\S OF '1'I-IE A'l'TOH:\EY GE:\ERAL 28ll D. A. Crichton, A. t". Stiles and Frank Hoherts as Trustees for the depositors of the dosed bank. or their successors in interest, such stock to be \'oted hy the Superintendent of Banks of the State of :\Iontana, or his successors in office." You have asked my opinion on the following question: "WilI you kindly adYise me if I have any author- it~· to vote stock as Superintendent of Banks, or whether I could 11I1,e the proxy from the stockholder on record and Simply appro\'e of the party to Whom he g-iYes the proxy'!" Section 58, Chapter S9, Laws of :\Ion- tana, 1927, provides: "Neither the Su- perintendent of Banks nor any bank examiner shall be interested in or a horrower from any State bank, directl~­ or indireotlv." In view of the abo\'e- quoted stat'ute it is my opinion that ~'un have no authol'ity tu ,'ute the stock in q nestion for to do so might in(\i- rectly, if not directly, interest yon ill the ba nk. In order to vote the stock on any question or issue it would be nec('ssar.I· for ~'on to give consideration to and to pass judgment upon such question or issue. Your judgment as Superintendent of Banks might be in- fluenced ,by such action. "Thile, of course, YOl; a re not financially inter- ested in the bank, yet the duties and obligations of voting the stock as proxy would, in my opinion, be inconsistent with your duty 'as Superintendent of Banks. 'While there lIIi;.:ht he some douht in this connection, if there is any doubt at a II you should, in my opinion, re- frain from Yoting said stock.