The board of J.P. Morgan has approved a series of calibrations to the bank's by-laws, including a particularly concerning one.
The U.S. bank's board endorsed a series of tweaks to its bylaws, which is nothing unusual, however one a new section defining what constitutes a quorum in the event of a «nuclear or atomic disaster,» has observers wondering why?
That scenario as Bloomberg reports, is listed among emergencies that might make it hard to hold a normal meeting. The clause can take effect if the U.S. is attacked or in a variety of other situations involving chemical or biological weapons, natural disasters or «acts of God.»
Asian Banks
In the case of such an event, any member of the board or the firm’s operating committee can call a meeting using «any available means of communication.» One person is enough to constitute a quorum.
Vacancies can be filled by a majority vote of available directors. And if none are around, then designated officers can stand in. No officer, director or employee can be held liable in such a situation, except for «willful misconduct.» There is no news yet of any Asian based banks that have decided to modify their own bylaws to reflect such a worst case scenario.
