[§414-199] Removal of directors by judicial proceeding.
126 words·~1 min read·
/hi/chapter-414/414-199A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
[§414-199] Removal of directors by judicial proceeding.
(a)The circuit court may remove a director of the corporation from office in a proceeding commenced either by the corporation or by its shareholders holding at least ten per cent of the outstanding shares of any class if the court finds that:
(1)The director engaged in fraudulent or dishonest conduct, or gross abuse of authority or discretion, with respect to the corporation; and
(2)Removal is in the best interest of the corporation.
(b)The court that removes a director may bar the director from reelection for a period prescribed by the court.
(c)If shareholders commence a proceeding under subsection (a), they shall make the corporation a party defendant. [L 2000, c 244, pt of §1]