Utah Judicial removal of director
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Revision as of 04:00, 20 January 2015 by Admin (Talk | contribs) (Created page with "[http://le.utah.gov/xcode/Title16/Chapter10a/16-10a-S809.html 16-10a-809. Removal of directors by judicial proceeding]. :(1) The district court of the county in this state w...")
16-10a-809. Removal of directors by judicial proceeding.
- (1) The district court of the county in this state where a corporation's principal office is located or, if it has no principal office in this state, the district court for Salt Lake County may remove a director in a proceeding commenced 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 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 commence a proceeding under Subsection (1), they shall make the 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 16-10a-1608.
