Owners can recall directors

According to Articles 33 (1), the majority of owners (50% plus one) can remove one or more directors at an owners meeting before the expiration of the director’s term of office by a vote at a meeting duly called for the purpose.

At the same meeting, the owners may elect any person qualified to be a member of the board for the remainder of the term of a director who has been removed.

Therefore, if a board feels that one or two owners are not acting in the best interest of the owners, or are acting unethically, they can requisition an owners meeting by collecting a minimum of 15% of all the owners on a petition and call a meeting.

If they can get a quorum of 25% of all the owners and then 50% plus one of the owners vote in favour, either in person or by proxy, then the director or directors are removed.

Mud slinging contest
Although this has been successful in some situations, it doesn't always work as the majority of the directors hoped.

At times, the majority did not get enough owners to agree with them. The director gets the opportunity to defend herself in front of the owners, in an open meeting, and it may be the majority of the board who ends up looking bad.

No guarantees that all the directors will not end up being discredited as both sides start throwing mud.

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