§ 55A-8-10. Removal of directors by judicial proceeding.

182 words·~1 min read·/nc/chapter-55a/55a-8-10

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)The superior court of the county where a corporation's principal office (or, if there is none in this State, its registered office) is located may remove any director of the corporation from office in a proceeding commenced either by the corporation or by its members holding at least ten percent (10%) of the votes entitled to be cast of any class of members, 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, or a final judgment has been entered finding that the director has violated a duty set forth in G.S. 55A-8-30 through G.S. 55A-8-33, and

(2)Removal is in the best interest of the corporation.

(b)The court that removes a director may bar the director from serving on the board of directors for a period prescribed by the court.

(c)If members commence a proceeding under subsection

(a)of this section, the corporation shall be made a party defendant. (1993, c. 398, s. 1.)