47-1A-809. Removal of directors by judicial proceeding.
168 words·~1 min read·
/sd/title-47/chapter-47-1/47-1a-809A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The circuit court of the county where a corporation's principal office is located, or, if none in this state, the circuit court of Hughes County, may remove a director of the corporation from office in a proceeding commenced by or in the right of the corporation if the court finds that
(1)the director engaged in fraudulent conduct with respect to the corporation or its shareholders, grossly abused the position of director, or intentionally inflicted harm on the corporation; and
(2)considering the director's course of conduct and the inadequacy of other available remedies, removal would be in the best interest of the corporation.
A shareholder proceeding on behalf of the corporation under this section shall comply with all of the requirements of §§ 47-1A-740 to 47-1A-747 , inclusive, except subdivision 47-1A-741(1).
The court, in addition to removing the director, may bar the director from reelection for a period prescribed by the court. Nothing in this section limits the equitable powers of the court to order other relief.