§ 8.09.
198 words·~1 min read·
/vt/8-09A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 8.09. Removal of directors by judicial proceeding
(a)(1) The Superior 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 percent of the outstanding shares of any class if the court finds that:
(A)the director engaged in fraudulent or dishonest conduct relating to the corporation, or in a gross abuse of authority or discretion relating to the corporation; and
(B)removal is in the best interest of the corporation.
(2)The petition for removal shall be filed:
(A)in the county where the corporation’s principal office is located;
(B)in the county where the corporation’s registered office is located if the corporation has no principal office in this State; or
(C)in the Washington County Superior Court where the corporation has no principal office or registered office in this State.
(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)of this section, they shall make the corporation a party defendant. (Added 1993, No. 85, § 2, eff. Jan. 1, 1994.)