N.C. Gen. Stat. § 55-8-09
Removal of directors by judicial proceeding
Redline — June 1, 2021 → current.View current text →
Current — April 1, 2022
As of June 1, 2021
(1) The superior court of the county where a corporation's principal office (or, if none in this State, its registered office) is located may remove a director of the corporation from office in a proceeding commenced either by the corporation or by its shareholders holding at least ten percent (10%) of the outstanding shares of any class if the court finds that: The director engaged in fraudulent or dishonest conduct, or gross abuse of authority or discretion, with respect to the corporation; and
(1) The superior court of the county where a corporation’s principal office (or, if none in this State, its registered office) is located may remove a director of the corporation from office in a proceeding commenced either by the corporation or by its shareholders holding at least ten percent (10%) of the outstanding shares of any class if the court finds that: The director engaged in fraudulent or dishonest conduct, or gross abuse of authority or discretion, with respect to the corporation; and
(2) Removal is in the best interest of the corporation.
(2) Removal is in the best interest of the corporation.
(3) The court that removes a director may bar the director from reelection for a period prescribed by the court.
(3) The court that removes a director may bar the director from reelection for a period prescribed by the court.
(4) If shareholders commence a proceeding under subsection (a), they shall make the corporation a party defendant.
(4) If shareholders commence a proceeding under subsection (a), they shall make the corporation a party defendant.
History
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.