Utah Code Title 16. Corporations § 16-6a-809. Removal of directors by judicial proceeding

Current as of January 01, 2025 | Updated by Findlaw Staff

(1)(a) A court may remove a director, in an action brought by the nonprofit corporation or by voting members holding at least 10% of the votes entitled to be cast in the election of the director's successor, if the court finds that:

(i) the director engaged in:

(A) fraudulent or dishonest conduct; or

(B) gross abuse of authority or discretion with respect to the nonprofit corporation; or

(ii)(A) a final judgment has been entered finding that the director has violated a duty set forth in Section 16-6a-822; and

(B) removal is in the best interests of the nonprofit corporation.

(2) The court that removes a director may bar the director for a period prescribed by the court from:

(a) reelection;

(b) reappointment; or

(3) If voting members commence a proceeding under Subsection (1), the voting members shall make the nonprofit 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 16-6a-1608.

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Cite this article: FindLaw.com - Utah Code Title 16. Corporations § 16-6a-809. Removal of directors by judicial proceeding - last updated January 01, 2025 | https://codes.findlaw.com/ut/title-16-corporations/ut-code-sect-16-6a-809/

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