Tennessee § 48-58-110 - Removal of directors by judicial proceeding.

§ 48-58-110. Removal of directors by judicial proceeding.

Any court of record having equity jurisdiction in the county where a corporation's principal office (or if none in this state, its registered office) is located may remove any director of the corporation from office in a proceeding commenced either by the corporation, its members holding at least ten percent (10%) of the voting power of any class or the attorney general and reporter in the case of a public benefit corporation if the court finds that: The director engaged in fraudulent or dishonest conduct, or gross abuse of authority or discretion, with respect to the corporation, or a final judgment has been entered finding that the director has violated a duty set forth in part 3 of this chapter; and Removal is in the best interest of the corporation. The court that removes a director may bar the director from serving on the board for a period prescribed by the court. If members or the attorney general and reporter commence a proceeding under subsection (a), the corporation shall be made a party defendant. If a public benefit corporation or its members commence a proceeding under subsection (a), they shall give the attorney general and reporter written notice of the proceeding. Acts 1987, ch. 242, § 8.10.