§414-199 - Removal of directors by judicial proceeding.
[§414-199] Removal of directors by judicialproceeding. (a) The circuit court may remove a director of thecorporation from office in a proceeding commenced either by the corporation orby its shareholders holding at least ten per cent of the outstanding shares ofany class if the court finds that:
(1) The director engaged in fraudulent or dishonestconduct, or gross abuse of authority or discretion, with respect to thecorporation; and
(2) Removal is in the best interest of thecorporation.
(b) The court that removes a director may barthe director from reelection for a period prescribed by the court.
(c) If shareholders commence a proceedingunder subsection (a), they shall make the corporation a party defendant. [L2000, c 244, pt of §1]