(a) The stockholders of each state banking institution shall meet annually. The banking institution shall prepare and submit to the stockholders a copy of the
institution’s most recent fiscal year audited financial statements. The audited financial statement may be consolidated or combined statements of the
banking institution, its holding company and any subsidiaries, that include a balance
sheet as of the end of the fiscal year, an income statement for that year and a statement
of changes in shareholders’ equity for the year. The submission is sufficient if, within 120 days of the close of the fiscal year,
the banking institution delivers a physical or digital copy of the requisite statement
through traditional mail or courier service, electronic mail or any other means of
delivery or provides shareholders with notice of access to a digital copy of the statements
published to a website or any other digital media platform or portal.
(b) The board of directors of the banking institution or, if such banking institution
is controlled by a bank holding company, the bank holding company shall appoint an
outside auditing firm on an annual basis to serve as the banking institution’s auditor
for the year.
(c) At such time or times as it may be directed to do so by the written request of
the board of directors, or the Commissioner of Financial Institutions, such outside
independent auditing firm shall immediately proceed to examine the condition of the
bank, and upon completion of such examination, shall file its report in writing with
the board of directors. Such report shall set forth in detail all items included in the assets of the bank
which the firm has reason to believe are not of the value at which they appear on
the books and records of the bank, and shall give the value of each of such items
according to its judgment. The board of directors shall cause such report to be retained as a part of the records
of the bank.
(d) The workpapers of any audit, including any materials associated with an audit
of the bank’s electronic data procedures, shall be made available to the commissioner
or to the examiners of the Division of Financial Institutions upon request, and will
be accorded confidentiality in conformity with § 31A-2-4 of this code.
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