35-2-421. Removal of directors elected by members or directors. (1) The members may remove one or more directors elected by them without cause.
(2) If a director is elected by a class, chapter, or other organizational unit or by region or other geographic grouping, the director may be removed only by the members of that class, chapter, unit, or grouping.
(3) Except as provided in subsection (9), a director may be removed under subsection (1) or (2) only if the number of votes cast to remove the director would be sufficient to elect the director at a meeting to elect directors.
(4) If cumulative voting is authorized, a director may not be removed:
(a) if the number of votes sufficient to elect the director under cumulative voting is voted against the director's removal; or
(b) if the director was elected by a class, chapter, unit, or grouping of members and the number of votes of that class, chapter, unit, or grouping of members sufficient to elect the director under cumulative voting is voted against the director's removal.
(5) A director elected by members may be removed by the members only at a meeting called for the purpose of removing the director. The meeting notice must state that the purpose or one of the purposes of the meeting is removal of the director.
(6) In computing whether a director is protected from removal under subsections (2) through (4), it should be assumed that the votes against removal are cast in an election for the number of directors of the class to which the director to be removed belonged on the date of that director's election.
(7) An entire board of directors may be removed under subsections (1) through (5).
(8) A director elected by the board may be removed without cause by the vote of two-thirds of the directors then in office or by a greater number as is set forth in the articles or bylaws. However, a director elected by the board to fill the vacancy of a director elected by the members may be removed without cause by the members, but not the board.
(9) If, at the beginning of a director's term on the board, the articles or bylaws provide that the director may be removed for missing a specified number of board meetings, the board may remove the director for failing to attend the specified number of meetings. The director may be removed only if a majority of the directors then in office vote for the removal.
(10) The articles or bylaws of a religious corporation may:
(a) limit the application of this section; and
(b) set forth the vote and procedures by which the board or any person may remove with or without cause a director elected by the members of the board.
History: En. Sec. 80, Ch. 411, L. 1991.
Structure Montana Code Annotated
Title 35. Corporations, Partnerships, and Associations
Chapter 2. Nonprofit Corporations
Part 4. Directors and Officers -- Indemnification
35-2-414. Requirement for and duties of board
35-2-415. Qualifications and numbers of directors
35-2-416. General standards for directors
35-2-417. Election, designation and appointment of directors
35-2-418. Director conflict of interest
35-2-419. Terms of directors generally -- staggered terms
35-2-420. Resignation of directors
35-2-421. Removal of directors elected by members or directors
35-2-422. Removal of designated or appointed directors
35-2-423. Removal of directors by judicial proceeding
35-2-425. Compensation of directors
35-2-427. Regular and special meetings
35-2-428. Action without meeting
35-2-429. Call and notice of meetings
35-2-433. Committees of the board
35-2-435. Loans to or guaranties for directors and officers
35-2-436. Liability for unlawful distributions
35-2-437. and 35-2-438 reserved
35-2-440. Duties and authority of officers
35-2-441. Standards of conduct for officers
35-2-442. Resignation and removal of officers
35-2-443. Contract rights of officers
35-2-444. Officers' authority to execute documents
35-2-447. Authority to indemnify
35-2-448. Mandatory indemnification
35-2-449. Advance for expenses
35-2-450. Court-ordered indemnification
35-2-451. Determination and authorization of indemnification
35-2-452. Indemnification of officers, employees, and agents