Appointments to Evade Recall
Adams Stirling PLC
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APPOINTMENTS TO EVADE RECALL

QUESTION: We submitted a petition to recall the board and they immediately appointed new directors to replace themselves. They claim that a new board new exists and the recall is moot. We believe they will let recall emotions cool and have their appointees resign and reappoint the original directors back onto the board. Is that legal?

ANSWER: Such actions subvert the recall process, which includes an election. With a successful recall, the membership selects a board of their choosing. That process is undermined when a board refuses to proceed with a recall because it, rather than the membership, selected their replacements.

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Adams Stirling PLC