California Corporations Code 12362 – (a) Subject to subdivisions (b), (c) and (g), any or all …
(a) Subject to subdivisions (b), (c) and (g), any or all directors may be removed without cause if one of the following applies:
(1) In a corporation with fewer than 50 members, the removal is approved by a majority of all members (Section 12223).
Terms Used In California Corporations Code 12362
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Corporation: as used in this part means a corporation which is organized under, or subject to this part, including a central organization. See California Corporations Code 12232
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Directors: means natural persons, designated in the articles or bylaws or elected by the incorporators, and their successors and natural persons designated, elected, or appointed by any other name or title to act as members of the governing body of the corporation. See California Corporations Code 12233
- Person: includes a corporation as well as a natural person. See California Corporations Code 18
- Trustee: A person or institution holding and administering property in trust.
(2) In a corporation with 50 or more members, the removal is approved by the members (Section 12224).
(b) In a corporation in which the articles or bylaws authorize members to cumulate their votes pursuant to subdivision (a) of Section 12485, no director may be removed (unless the entire board is removed) when the votes cast against removal, or not consenting in writing to the removal, would be sufficient to elect the director if voted cumulatively at an election at which the same total number of votes were cast (or, if the action is taken by written ballot, all memberships entitled to vote were voted) and the entire number of directors authorized at the time of the director’s most recent election were then being elected; and
(c) When by the provisions of the articles or bylaws the members of any class, voting as a class, are entitled to elect one or more directors, any director so elected may be removed only by the applicable vote of the members of that class.
(d) Any reduction of the authorized number of directors or any amendment reducing the number of class of directors does not remove any director prior to the expiration of the director’s term of office, unless the reduction or amendment also provides for removal of one or more specified directors.
(e) Except as provided in this section and Sections 12361 and 12363, a director may not be removed prior to the expiration of the director’s term of office.
(f) Where a director removed under this section or Section 12361 or 12363 was chosen by designation pursuant to subdivision (d) of Section 12360, then:
(1) Where a different person may be designated pursuant to the governing article or bylaw provision, the new designation shall be made; or
(2) Where the governing article or bylaw provision contains no provision under which a different person may be designated, the governing article or bylaw provision shall be deemed repealed.
(g) For the purposes of this subdivision, “designator” means one or more designators. If by the provisions of the articles or bylaws a designator is entitled to designate one or more directors, then:
(1) Unless as otherwise provided in the articles or bylaws at the time of designation, any director so designated may be removed without cause by the designator of that director.
(2) Any director so designated may only be removed under subdivision (a) with the written consent of the designator of that director.
(3) Unless as otherwise provided in the articles or bylaws, the right to remove shall not apply if any of the following circumstances exist:
(A) The designator entitled to that right has died or ceased to exist.
(B) If that right is in the capacity of an officer, trustee, or other status, and the office, trust, or status has ceased to exist.
(Amended by Stats. 2009, Ch. 631, Sec. 47. (AB 1233) Effective January 1, 2010.)