Sec. 514.
(1) The circuit court of the county in which the principal place of business or registered office of the corporation is located may remove a director of the corporation from office in a proceeding commenced either by the corporation or by its shareholders holding at least 10% of the outstanding shares of any class if the court finds that the director engaged in fraudulent, illegal, or dishonest conduct, or gross abuse of authority or discretion, with respect to the corporation, and removal is in the best interest of the corporation.
(2) The court that removes a director may bar him or her from serving as a director of the corporation for a period prescribed by the court.
(3) If shareholders commence a proceeding under subsection (1), they shall make the corporation a party defendant.
History: Add. 1989, Act 121, Eff. Oct. 1, 1989
Structure Michigan Compiled Laws
Act 284 of 1972 - Business Corporation Act (450.1101 - 450.2099)
284-1972-5 - Chapter 5 Directors and Officers (450.1501...450.1571)
Section 450.1501 - Management of Corporation; Qualifications of Director.
Section 450.1511 - Removal of Directors by Shareholders.
Section 450.1514 - Removal of Director by Court.
Section 450.1515 - Repealed. 1989, Act 121, Eff. Oct. 1, 1989.
Section 450.1515a - Filling Vacancy in Board.
Section 450.1521 - Regular or Special Meetings of Board.
Section 450.1523 - Quorum; Majority Vote as Constituting Action of Board.
Section 450.1525 - Consent to Action of Board Without Meeting.
Section 450.1528 - Committees; Powers and Authority; Limitations; Subcommittees.
Section 450.1529 - Submission of Matter to Shareholder Vote.
Section 450.1535 - Removal or Resignation of Officers; Contract Rights.
Section 450.1541 - Repealed. 1989, Act 121, Eff. Oct. 1, 1989.
Section 450.1545 - Repealed. 1989, Act 121, Eff. Oct. 1, 1989.
Section 450.1545a - Interest of Director or Officer in Transaction; Compensation of Directors.
Section 450.1546 - Repealed. 1989, Act 121, Eff. Oct. 1, 1989.
Section 450.1548 - Loan, Guaranty, or Assistance by Corporation to Director, Officer, or Employee.
Section 450.1553 - Presumption of Concurrence by Director in Corporation Action; Effect of Dissent.
Section 450.1554 - Action Against Director or Shareholder; Limitation.
Section 450.1561 - Indemnification of Certain Persons Generally.
Section 450.1562 - Additional Provisions for Indemnification of Certain Persons.
Section 450.1563 - Indemnification Against Actual and Reasonable Expenses.
Section 450.1564 - Repealed. 1989, Act 121, Eff. Oct. 1, 1989.
Section 450.1564c - Application for Indemnification to Court; Determination.