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.