§ 564-F:10-1007 — Removal

(a) A director may be removed in accordance with the governing documents.
(b) The court may remove a director if:
(1) The director has committed a serious breach of duty;
(2) Lack of cooperation among the directors substantially impairs the management of the foundation's affairs;
(3) Because of unfitness, unwillingness, or persistent failure of the director to manage the foundation effectively, the court determines that removal of the director best serves the foundation's purposes and the beneficiaries' interests; or
(4) The court finds that:
(A) There has been a substantial change of circumstances or all of the beneficiaries request the removal;
(B) The director's removal best serves the beneficiaries' interests and the foundation's purposes;
(C) The director's removal is not inconsistent with any of the foundation's material purposes; and
(D) One or more suitable persons are continuing to serve as directors or a suitable successor director is available.
(c) For purposes of subsection (b)(4)(C), the removal of a person whom the founder personally appointed as a director is presumptively inconsistent with one of the foundation's material purposes, but that presumption may be rebutted by a preponderance of the evidence.

Legislative History

2017, 257:47, eff. Oct. 1, 2017.