When can shareholders remove a director before her term expires?

Shareholders can remove a director before her term expires under the condition that they have the authority to do so, which typically is governed by state corporate laws and the company’s bylaws. The correct answer emphasizes that shareholders can remove a director "with or without cause," as long as there is a valid meeting where the removal occurs.

This means that shareholders do not need to provide a specific reason for removal, allowing flexibility and responsiveness to any dissatisfaction regarding the director's performance or behavior. This provision promotes shareholder empowerment and allows them to take action if they feel the leadership is not in alignment with their interests or the company’s direction.

The mention of a "valid meeting" reinforces the requirement that the removal process follows proper procedural guidelines. This often means that a meeting must be called where sufficient notice is provided, and the requisite quorum is present for a vote on the matter.

In contrast, other options are more restrictive and do not align with common corporate governance practices. For instance, removing a director "only with cause" would impose unnecessary limitations, inhibiting shareholder control and flexibility. Furthermore, asserting that directors can only be removed "during an annual meeting" restricts the timing, making it difficult for shareholders to act in urgent situations. Lastly, the notion that