Utah Code § 16-6a-809

Current through the 2024 Fourth Special Session
Section 16-6a-809 - Removal of directors by judicial proceeding
(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
(c) designation.
(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.

Utah Code § 16-6a-809

Amended by Chapter 401, 2023 General Session ,§ 15, eff. 7/1/2024.
Amended by Chapter 9, 2001 General Session
Amended by Chapter 127, 2001 General Session.