Home Q&A Forum Can a company amend its Articles of Association to remove a director without their consent?

Corporate Governance

Certificates of Incorporation

New York

Asked on Dec 25, 2024

Can a company amend its Articles of Association to remove a director without their consent?

I am a shareholder in a small company and there has been ongoing conflict between the directors, resulting in a breakdown in communication and decision-making. One of the directors has become uncooperative and is hindering the progress of the company. I want to know if it is possible for the company to amend its Articles of Association in order to remove this director without their consent, and what legal steps need to be taken to do so.

Answers from 1 Lawyer

Answer

Corporate Governance

New York

Answered 477 days ago

Damien B.

ContractsCounsel verified

Business Lawyer
Licensed in New York
4.9 (13)
Member Since:
October 3, 2023

In New York, a business corporation is formed by filing a Certificate of Incorporation under Section 402 of the Business Corporation Law (BCL). The Certificate typically does not include the names of directors. The corporation’s bylaws outline the procedures for electing and removing directors, and shareholders often enter into a shareholders' agreement to address governance matters. To remove a director, the process is generally governed by the bylaws. If no bylaws exist, the BCL provides that removal usually requires a majority vote of the shares entitled to elect directors, unless a higher threshold is specified in the Certificate of Incorporation or bylaws.

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