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Searching 2019-2020 Session

The Vermont Statutes Online

 

Title 11A : Vermont Business Corporations

Chapter 008 : DIRECTORS AND OFFICERS

Subchapter 001 : BOARD OF DIRECTORS

(Cite as: 11A V.S.A. § 8.09)
  • § 8.09. Removal of directors by judicial proceeding

    (a)(1) The Superior Court 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 of the outstanding shares of any class if the court finds that:

    (A) the director engaged in fraudulent or dishonest conduct relating to the corporation, or in a gross abuse of authority or discretion relating to the corporation; and

    (B) removal is in the best interest of the corporation.

    (2) The petition for removal shall be filed:

    (A) in the county where the corporation's principal office is located;

    (B) in the county where the corporation's registered office is located if the corporation has no principal office in this State; or

    (C) in the Washington County Superior Court where the corporation has no principal office or registered office in this State.

    (b) The court that removes a director may bar the director from reelection for a period prescribed by the court.

    (c) If shareholders commence a proceeding under subsection (a) of this section, they shall make the corporation a party defendant. (Added 1993, No. 85, § 2, eff. Jan. 1, 1994.)