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Current as of January 01, 2024 | Updated by Findlaw Staff
1. The district court of the county where the principal executive office of a corporation is located may remove any director of the corporation from office in a proceeding commenced either by the corporation or its shareholders holding at least ten percent of the voting power of any class of shares, if the court finds:
a. The director engaged in fraudulent or dishonest conduct or gross abuse of authority or discretion, with respect to the corporation;
b. A final judgment has been entered finding that the director has violated section 10-19.1-50; and
c. Removal is in the best interest of the corporation.
2. The court that removes a director may bar the director from serving on the board for a period prescribed by the court.
3. If the shareholders commence a proceeding under subdivision a of subsection 1, then the corporation shall be made a party defendant.
Cite this article: FindLaw.com - North Dakota Century Code Title 10. Corporations § 10-19.1-41.1. Removal of directors by judicial proceeding - last updated January 01, 2024 | https://codes.findlaw.com/nd/title-10-corporations/nd-cent-code-sect-10-19-1-41-1/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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