35-1-425. Removal of directors by judicial proceeding.
35-1-425. Removal of directors by judicial proceeding. (1) The district court of the county where a corporation's principal office is located or, if the office is not located in this state, in Lewis and Clark County may remove a director of the corporation from office in a proceeding begun either by the corporation or by its shareholders holding at least 10% of the outstanding shares of any class if the court finds that:
(a) the director engaged in fraudulent or dishonest conduct or in gross abuse of authority or discretion, with respect to the corporation; and
(b) removal is in the best interest of the corporation.
(2) The court that removes a director may bar the director from reelection for a period prescribed by the court.
(3) If shareholders begin a proceeding under subsection (1), they shall make the corporation a party defendant.
History: En. Sec. 83, Ch. 368, L. 1991; amd. Sec. 22, Ch. 240, L. 2007.