Legal Question in Banking Law in Illinois
in the state of illinois can a minority shareholder force removal of director who has breach their fiduciary duty?
1 Answer from Attorneys
Depends what you mean by "force". Generally there's what's called a "shareholder's derivative action" which is a lawsuit that a shareholder (of even just 1 share) could file against the company if it has failed to take action in the proper situation. But you just say the director breached his or her duty, and that's not proof he or she actually did. And prior to filing such a lawsuit, which can be costly, the usual route is to attempt to resolve it internally, which could include, among other things, a claim against the company's director & officer liability insurance if the company, you and other shareholders were damaged by this director's actions.
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