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Author | Message |
JDHaller
Walk-On ![]() ![]() Joined: 4/21/04 Location: United States Online Status: Offline Posts: 0 |
![]() Posted: 11/03/04 at 2:56am |
At our next regular meeting I am going to propose the removal of a board member. I am positive that if the vote were left to a verbal yeah or nay it will not pass because voting members would not want to appear to dislike the board member in question. However, I do believe that if it were to be by secret ballot the proposal would pass. What are your ideas? Do you think it is ethical to ask for a secret ballot? In your opinion is it legal? Have you had experience with this? I'm torn because I know that most board members would like to see this board member in question removed. But I also know that most of them don't want to be considered the bad guy. HELP! Thank, John. |
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dougb
Celebrity ![]() Joined: 3/30/04 Location: United States Online Status: Offline Posts: 148 |
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Most by-laws specify the conditions under which a director can be removed from the board (missing more than three consecutive meetings without good cause shown, for example). Some have a catchall phrase allowing removal of directors "for cause" or something like that. If there is no such language then the laws of your state will apply. It is very, very difficult to remove a director for cause. Is effect they must have broken the law or done something that is so obviously opposed to the best interest of the organization that no one would take such an action. That is a very hard accusation to prove. Most by-laws also have a notice requirement before a director can be removed. Again, if not, state law will govern. In over 30 years of dealing with boards of directors, only once have I seen a director removed for cause. In that case the director was revealing confidential information from executive session to the union during union contract negotiations. Also expect the lawyers to get involved and the price tag to escalate - remember that many by-laws provide indemnification for directors who are sued as a result of their role as a director - your theater may end up paying for both sides of the lawsuit!!!! Just a few things to think about. |
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JDHaller
Walk-On ![]() ![]() Joined: 4/21/04 Location: United States Online Status: Offline Posts: 0 |
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It took a while, but I found the information. (3) When shareholders or members of a class are entitled by the articles or a bylaw adopted pursuant to section 506(2) to elect 1 or more directors, this section applies, with respect to removal of a director so elected, to the vote of the holders of the outstanding shares or members of that class and not to the vote of the outstanding shares or membership as a whole.
Edited by JDHaller |
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Denise
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We recently removed a board member by way of simply talking directly to her. It was becoming increasingly obvious that she was to busy in "her other life" to continue working effectivley as our board secretary and marketing person. If your member is open to it, ask them if this is the case for them as well. She resigned the position and was, in fact, relieved. I think it is perfectly legal to take a vote, be it secret or otherwise. However, begin with a conversation with the member. Hope this helps a bit.
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