{"data":{"id":"us-mt/35-2-423","jurisdiction":"us-mt","citation":"35-2-423","heading":"Removal of directors by judicial proceeding.","body":"(1) The district court for the judicial district of the county where a corporation's principal office is located or, if the principal office is not located in the state, Lewis and Clark County may remove any director of the corporation from office in a proceeding commenced by the corporation, by its members holding at least 10% of the voting power of any class, or by the attorney general in the case of a public benefit corporation if the court finds that:\n(a) (i) the director engaged in fraudulent or dishonest conduct or in gross abuse of authority or discretion with respect to the corporation; or\n(ii) a final judgment has been entered finding that the director has violated a duty set forth in 35-2-416, 35-2-418, 35-2-435, or 35-2-436; and\n(b) removal is in the best interest of the corporation.\n(2) The court that removes a director may bar the director from serving on the board for a period prescribed by the court.\n(3) If members or the attorney general commence a proceeding under subsection (1), the corporation must be made a party defendant.\n(4) If a public benefit corporation or its members commence a proceeding under subsection (1), they shall give the attorney general written notice of the proceeding.\n(5) The articles or bylaws of a religious corporation may limit or prohibit the application of this section.","path":["TITLE 35. CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS","CHAPTER 2. NONPROFIT CORPORATIONS","Part 4. Directors and Officers -- Indemnification"],"source_url":"https://mca.legmt.gov/bills/mca/title_0350/chapter_0020/part_0040/section_0230/0350-0020-0040-0230.html","current_through":"Montana Code Annotated 2025","vintage":"","retrieved_at":"2026-09-14T04:53:08Z","sha256":"e36f254d4043a4ddd96d80b315c8e80848a979016c2cf6088da0959e402f1e4b","source_id":"us-mt","stale":false,"prev":"us-mt/35-2-422","next":"us-mt/35-2-424"},"notice":"GroundRules: Original legal text. Not legal advice."}