Montana § 35-2-423 Removal Of Directors By Judicial Proceeding

Montana Statutes

§ 35-2-423 — Removal Of Directors By Judicial Proceeding

Montana § 35-2-423

Title 35CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS

Ch. 2NONPROFIT CORPORATIONS

Part 4Directors and Officers -- Indemnification

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Bluebook

Mont. Code Ann. § 35-2-423 (2026).

Text

35-2-423 . Removal of directors by judicial proceeding.

(1)The district court for the judicial district of the county where a corporation's principal office is located or, if the principal office is not located in the state, Lewis and Clark County may remove any director of the corporation from office in a proceeding commenced by the corporation, by its members holding at least 10% of the voting power of any class, or by the attorney general in the case of a public benefit corporation if the court finds that:

(a)(i) the director engaged in fraudulent or dishonest conduct or in gross abuse of authority or discretion with respect to the corporation; or

(ii)a final judgment has been entered finding that the director has violated a duty set forth in 35-2-416 , 35-2-418 , 35-2-435 , or 35-2-

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35-2-423 . Removal of directors by judicial proceeding. (1) The district court for the judicial district of the county where a corporation's principal office is located or, if the principal office is not located in the state, Lewis and Clark County may remove any director of the corporation from office in a proceeding commenced by the corporation, by its members holding at least 10% of the voting power of any class, or by the attorney general in the case of a public benefit corporation if the court finds that:
(a) (i) the director engaged in fraudulent or dishonest conduct or in gross abuse of authority or discretion with respect to the corporation; or
(ii) a final judgment has been entered finding that the director has violated a duty set forth in 35-2-416 , 35-2-418 , 35-2-435 , or 35-2-436 ; and
(b) 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 members or the attorney general commence a proceeding under subsection (1), the corporation must be made a party defendant.
(4) If a public benefit corporation or its members commence a proceeding under subsection (1), they shall give the attorney general written notice of the proceeding.
(5) The articles or bylaws of a religious corporation may limit or prohibit the application of this section.