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                          HOUSE BILL 1139

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State of Washington      56th Legislature     1999 Regular Session

By Representatives Sheahan, Constantine and Kenney

Read first time 01/15/1999.  Referred to Committee on Judiciary.

Removing a director of a nonprofit corporation from office.

    AN ACT Relating to judicial removal of a director of a nonprofit corporation from office; and adding a new section to chapter 24.03 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 24.03 RCW to read as follows:

    (1) The 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 by the corporation if the court finds that (a) the director engaged in fraudulent or dishonest conduct with respect to the corporation, and (b) removal is in the best interest of the corporation.

    (2) The court that removes a director may bar the director from reelection for a period prescribed by the court.

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