How can directors be removed from their position according to the Revised Corporation Code?

Study for the Revised Corporation Code test. Prepare with comprehensive multiple-choice questions and detailed explanations. Boost your knowledge and confidence for your exam day!

The removal of directors under the Revised Corporation Code requires a two-thirds (2/3) vote of the stockholders. This provision ensures that a significant majority of shareholders have a say in the governance of the corporation, reflecting the serious nature of removing individuals from their leadership positions. A two-thirds majority is a common threshold in corporate governance as it provides a balance between stability in management and the need for accountability to shareholders.

The requirement for a two-thirds vote underscores the democratic principles embedded within corporate governance, whereby shareholders must actively participate in such significant decisions. This approach also prevents arbitrary dismissals, ensuring that directors cannot be ousted without substantial agreement among shareholders, thus protecting the integrity of the governance structure.

In contrast, the other options suggest methods that either lack sufficient participation by shareholders or do not align with established corporate governance practices. Unanimous votes and decisions by the Corporate Secretary or a written request from a majority of directors would either be impractical or undermine the authority and responsibility of the shareholders in overseeing directors. Hence, the correct answer effectively reflects the procedural norms outlined in the Revised Corporation Code regarding the removal of directors.

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