A.R.S. § 10-3810 — Removal of directors by judicial proceeding

Removal of directors by judicial proceeding

Planned Communities & Condominiums · Text verified 2026-07-25

In plain English: A court may remove a director from office in a proceeding brought by the association or by members holding at least twenty-five percent of the voting power of any class. The court may do so only if it finds both that the director engaged in fraudulent or intentional criminal conduct toward the association and that removal is in the association's best interests. The court may also bar the person from serving on the board for a set period, which cannot exceed five years.

10-3810. Removal of directors by judicial proceeding

A. 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.

B. 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.

C. 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.

D. The articles of incorporation or bylaws of a corporation organized for religious purposes may limit or prohibit the application of this section.

Source: A.R.S. § 10-3810 — Arizona State Legislature