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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 26, 2000 (July 18, 2000)
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COMMUNITY BANCSHARES, INC.
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE 000-16461 63-0868361
(State or Other Jurisdiction (Commission File (I.R.S. Employer
of Incorporation) Number) Identification Number)
MAIN STREET 35031
BLOUNTSVILLE, ALABAMA (Zip Code)
(Address of Principal Executive Offices)
(205) 429-1000
(Registrant=s Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, If Changed Since Last Report)
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ITEM 5. OTHER EVENTS
On July 18, 2000, the Boards of Directors of Registrant and
Registrant's subsidiary, Community Bank, appointed a joint committee comprised
of independent members of the Boards to investigate allegations that Community
Bank may have been overcharged by contractors in connection with certain current
construction projects. Questions about these construction projects were first
raised with management at a meeting of Community Bank's Board of Directors on
June 20, 2000. Management commenced its investigation which resulted in a
presentation to the Boards of Directors of Registrant and Community Bank at the
request of management by the architects and contractors involved in the
projects. Following these presentations, the joint committee was
formed to further investigate the allegations. This joint committee has been
authorized to retain independent consultants as it deems appropriate to assist
in the conduct of the investigation. Upon the completion of its investigation,
the joint committee is to inform the Boards of Directors of Registrant and
Community Bank of its findings and any recommendations for additional actions.
Management has been informed that the directors of Community Bank who raised
these allegations also contacted bank regulatory agencies and law enforcement
authorities who the Registrant believes are conducting concurrent investigations
regarding this matter.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COMMUNITY BANCSHARES, INC.
By: /s/ Kennon R. Patterson, Sr.
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Kennon R. Patterson, Sr.
Chairman, President and
Chief Executive Officer
Date: July 26, 2000
