Corporate Finance And Accounting Treating of the Corporate Finances And Securi

Cover Corporate Finance And Accounting Treating of the Corporate Finances And Securi
Corporate Finance And Accounting Treating of the Corporate Finances And Securi
Harry C Harry Clark Bentley
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Selection of Depositary.
The designation of the corporate depositary may be made by the charter, the by-laws or the directors, or it may be left to the treasurer of the corporation. It is manifest, however, that the selection should ordinarily be entrusted to the directors. The matter is too important to be left to the treasurer's unre- strained discretion. The charter and by-laws are too difficult of change to render them a suitable medium. The directors, on the other hand, combine a discretio
...n and responsibility with a reasonable promptness of action, that clearly fit them for this duty.
207. Directors' Powers as to Depositary.
(a) When Designated by Higher Authorities. If the particular bank in which the corporate deposits are to be made is designated in the by-laws, the directors have ordinarily no power to change this designation. Emergencies might, how- ever, arise which would modify this general rule.
Thus, should some unforeseen crisis endanger the sol- vency of the designated bank and it be impossible to secure another by-law designation with promptness, the directors would then not only be justified in transferring the corporate funds to some more secure depositary, but must do so in the 272 BANK DEPOSITS.


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