Section 16-6a-809 - [Effective Until 7/1/2024] Removal of directors by judicial proceeding(1)(a) The applicable court may remove a director in a proceeding commenced either 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.(b) For purposes of this Subsection (1), the applicable court is the:(i) district court of the county in this state where a nonprofit corporation's principal office is located; or(ii) if the nonprofit corporation has no principal office in this state: (A) the district court of the county in which its registered office is located; or(B) if the nonprofit corporation has no registered office, the district court for Salt Lake County.(2) The court that removes a director may bar the director for a period prescribed by the court from:(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.Amended by Chapter 9, 2001 General Session
Amended by Chapter 127, 2001 General Session.This section is set out more than once due to postponed, multiple, or conflicting amendments.