{"data":{"id":"us-nc/n.c.-gen.-stat.-55-8-09","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 55-8-09","heading":"Removal of directors by judicial proceeding.","body":"(a)\tThe superior court of the county where a corporation's principal office (or, if none in this State, its registered office) 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 ten percent (10%) of the outstanding shares of any class if the court finds that:\n(1)\tThe director engaged in fraudulent or dishonest conduct, or gross abuse of authority or discretion, with respect to the corporation; and\n(2)\tRemoval is in the best interest of the corporation.\n(b)\tThe court that removes a director may bar the director from reelection for a period prescribed by the court.\n(c)\tIf shareholders commence a proceeding under subsection (a), they shall make the corporation a party defendant. (1955, c. 1371, s. 1; 1959, c. 1316, s. 34; 1973, c. 469, s. 7; 1989, c. 265, s. 1.)","path":["Chapter 55. North Carolina Business Corporation Act.","Article 8. Directors and Officers.","Part 1. Board of Directors."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_55/GS_55-8-09.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:05:57Z","sha256":"d985213323ff8a7ebe0f5d67c25a4932c89c4efcdee5e2c55a2130dcb7c98739","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-55-8-08","next":"us-nc/n.c.-gen.-stat.-55-8-10"},"notice":"GroundRules: Original legal text. Not legal advice."}