21-2960. Suspension of director by board.

162 words·~1 min read·/ne/chapter-21/21-2960

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

(1)The board of directors may suspend a director, if, considering the director's course of conduct and the inadequacy of other available remedies, immediate suspension is necessary for the best interests of the limited cooperative association and the director is engaged in:

(a)Fraudulent conduct with respect to the limited cooperative association or its members;

(b)Gross abuse of the position of the director;

(c)Intentional infliction of harm on the limited cooperative association; or

(d)Any other behavior, act, or omission as provided by the articles of organization or bylaws.

(2)A suspension under subsection

(1)of this section is effective for thirty days unless the board of directors calls and gives notice of a special members' meeting for removal of the director before the end of the thirty-day period in which case the suspension is effective until adjournment of the special meeting or the director is removed.

(3)After suspension, a director may be removed pursuant to section 21-2959 .