Wisconsin Statutes 181.0810 – Removal of directors by judicial proceeding
Current as of: 2023 | Check for updates
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Terms Used In Wisconsin Statutes 181.0810
- 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.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Fiduciary: A trustee, executor, or administrator.
- Following: when used by way of reference to any statute section, means the section next following that in which the reference is made. See Wisconsin Statutes 990.01
(1) Grounds for removal. The circuit court for the county where a corporation‘s principal office is located may remove a director of the corporation from office in a proceeding commenced either by the corporation or by its members holding at least 10 percent of the voting power of any class, if the court finds all of the following:
(a) That the director engaged in fraudulent or dishonest conduct, or gross abuse of authority or a final judgment has been entered finding that the director has violated a fiduciary duty or a duty under ss. 181.0831 to 181.0833.
(b) That removal is in the best interest of the corporation.
(2) Bar from serving. A court that removes a director may bar the director from serving on the board for a period prescribed by the court.
(3) Corporation as defendant. If members commence a proceeding under sub. (1), the corporation shall be made a party defendant.