16-6a-809. Removal of directors by judicial proceeding.
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/ut/title-16/chapter-6a/16-6a-809·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 7/1/2024
16-6a-809. Removal of directors by judicial proceeding.
(a)A court may remove a director, in an action brought by the nonprofit corporation or by voting members holding at least 10% of the votes entitled to be cast in the election of the director's successor, if the court finds that:
(i)the director engaged in:
(A)fraudulent or dishonest conduct; or
(B)gross abuse of authority or discretion with respect to the nonprofit corporation; or
(A)a final judgment has been entered finding that the director has violated a duty set forth in Section 16-6a-822 ; and
(B)removal is in the best interests of the nonprofit corporation.
(2)The court that removes a director may bar the director for a period prescribed by the court from:
(a)reelection;
(b)reappointment; or
(c)designation.
(3)If voting members commence a proceeding under Subsection
(1), the voting members shall make the nonprofit corporation a party defendant.
(4)A director who is removed pursuant to this section may deliver to the division for filing a statement to that effect pursuant to Section 16-6a-1608 .
Amended by Chapter 401 , 2023 General Session