Title 10 - Corporations and Associations

Chapter 31, Directors and Officers - Nonprofit Corporations, Sec. 10-3801-10-3864

Removal of directors by judicial proceeding

Article 1, Board of Directors, § 10-3810

Source: Arizona Revised Statutes

  1. The court in the county where a corporation’s known place of business or, if none in this state, its statutory agent 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 twenty-five per cent of the voting power of any class, if the court finds that both:
    1. The director engaged in fraudulent conduct or intentional criminal conduct with respect to the corporation.
    2. Removal is in the best interests of the corporation.
  2. The court that removes a director may bar the director from serving on the board for a period prescribed by the court, but in no event may the period exceed five years.
  3. If members commence a proceeding under subsection A, they shall make the corporation a party defendant, unless the corporation elects to become a party plaintiff.
  4. The articles of incorporation or bylaws of a corporation organized for religious purposes may limit or prohibit the application of this section.

Also in: Chapter 31, Sec. 10-3801-10-3864

View all Nonprofit Corporation Act statutes.

Source: This content is sourced from the online version of the Arizona Revised Statutes located at www.azleg.gov.

Disclaimer: These statutes are provided as a courtesy by CHDB Law LLP. CHDB Law cannot guarantee that the statutes set forth on the website or in our published guide will not be found to be defective by a court or other tribunal after the date the books or online material are published. The HOA Knowledge Base does not attempt to include every statute that could apply to a community association issue. There may be other statutes or applicable laws that have a bearing on a particular legal issue confronted by a community association. These statutes are provided as a reference only. If a particular legal issue is confronted by a community association, the association should seek legal advice from competent attorneys.

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