§ 21-292 — Removal of directors by judicial proceeding

Nebraska § 21-292

• Jurisdiction: Nebraska
• Ch. 21: Corporations and Other Companies

Text

(MBCA 8.09) (a) The district
court of the county where a corporation's principal office, or, if none in
this state, its registered office, is located may remove a director of the
corporation from office in a proceeding commenced by or in the right of the
corporation if the court finds that (1) the director engaged in fraudulent
conduct with respect to the corporation or its shareholders, grossly abused
the position of director, or intentionally inflicted harm on the corporation
and (2) considering the director's course of conduct and the inadequacy of
other available remedies, removal would be in the best interest of the corporation.
(b) A shareholder proceeding
on behalf of the corporation under subsection (a) of this section shall comply
with all of the requirements of sections 21-275 to 21-282 , except subdivision
(1) of section 21-276 .
(c)
The court, in addition to removing the director, may bar the director from
reelection for a period prescribed by the court.
(d) Nothing in this section limits
the equitable powers of the court to order other relief.

Legislative History

Source: Laws 2014, LB749, § 92.