Unless limited by the articles of incorporation,shareholders may vote to remove a director with or without cause; however,the courts may remove a board member only for cause.

Question

Quizplus · Accepted Answer

This statement is true. Shareholders generally have the power to remove a director from the board of directors with or without cause, unless the articles of incorporation impose some limitation on this power. However, courts generally can only remove a director for cause, such as when the director has engaged in misconduct or is no longer capable of fulfilling their duties.

Unless Limited by the Articles of Incorporation,shareholders May Vote to Remove