Aug. 16 at 11:37 PM
$HOMU The removal of directors from a Nevada domestic corporation (78) is primarily accomplished through a vote of the shareholders, but the specifics can be modified by the corporation's articles of incorporation. 🗳️
The General Rule
According to Nevada Revised Statutes (NRS) Chapter 78.335, a director or a group of directors can be removed from office by a vote of stockholders representing not less than two-thirds of the voting power of the issued and outstanding stock. This is the default rule unless the corporation has specified a different procedure in its articles of incorporation.
Variations and Key Considerations
*Articles of Incorporation: The articles of incorporation are the primary document that can alter the default rules. They may require a higher percentage of the voting power (more than two-thirds) to remove a director.
*Cumulative Voting: If the corporation's articles provide for cumulative voting for the election of directors, the process for removal is more complex