Sec. 514.
(1) The circuit court of the county in which the principal place of business or registered office of the corporation 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 10% of the outstanding shares of any class if the court finds that the director engaged in fraudulent, illegal, or dishonest conduct, or gross abuse of authority or discretion, with respect to the corporation, and removal is in the best interest of the corporation.
(2) The court that removes a director may bar him or her from serving as a director of the corporation for a period prescribed by the court.
(3) If shareholders commence a proceeding under subsection (1), they shall make the corporation a party defendant.
History: Add. 1989, Act 121, Eff. Oct. 1, 1989
Last modified: October 10, 2016