35-1-425. Removal of directors by judicial proceeding. (1) The district court of the county where a corporation's principal office or, if the office is not located in this state, the county where its registered office is located may remove a director of the corporation from office in a proceeding begun either by the corporation or by its shareholders holding at least 10% of the outstanding shares of any class if the court finds that:
     (a) the director engaged in fraudulent or dishonest conduct or in gross abuse of authority or discretion, with respect to the corporation; and
     (b) removal is in the best interest of the corporation.
     (2) The court that removes a director may bar the director from reelection for a period prescribed by the court.
     (3) If shareholders begin a proceeding under subsection (1), they shall make the corporation a party defendant.

     History: En. Sec. 83, Ch. 368, L. 1991.