The board of HopFed Bancorp Inc. has amended the company's bylaws to disqualify for director election any person found to be under the control of someone ineligible for service.
The bylaws were further amended so that the prohibition against director nominees with enforcement actions against them would no longer be ineligible 10 years after the action's issuance.
Also modified was the prohibition against those convicted of a crime involving dishonesty or breach of trust, if the crime is punishable by imprisonment. The amendment disqualifies any person convicted of a felony crime or who is found liable in a non-criminal proceeding for fraud, dishonesty or deception, regardless of whether prison time is applicable.
The Hopkinsville, Ky.-based company has been under pressure from shareholder activist Joseph Stilwell. Stilwell's investor group, which has a history of nominating its representatives to bank boards, has called on HopFed to sell and has sued the board and management.