For Your Data Gottfried V. Gottfried Representative Brief

Gottfried v. Gottfried illustration brief summary
73 N.Y.S.2d 692 (1947)

CASE SYNOPSIS

Plaintiff minority stockholders filed conform to compel defendants, corporation, directors, as well as subsidiary, to declare dividends on its mutual stock.

CASE FACTS
The stockholders sought to compel defendants to declare dividends on mutual stock of a closely held corporation.

DISCUSSION

• The courtroom held that the corporation's surplus was non as well as thence large as to need the determination that the failure to declare dividends was motivated past times other than audio trouble organisation strategy, peculiarly inwards low-cal of special circumstances, including the doubtfulness of earning capacity during state of war years as well as heavy expenditures required to finance the company's growth. 
• The courtroom noted that piece at that topographic point was prove of rigid hostility betwixt the minority as well as bulk stockholders, including the removal of ii stockholders from the corporate payroll, that lonely did non quest a bad organized faith essay out past times defendants to strength the stockholders' sale of their involvement inwards the corporation. 
• The courtroom besides held that salaries as well as bonuses paid to bulk stockholders were reasonable inwards low-cal of their extraordinary service to the corporation, primarily inwards expanding the corporation. 
• The courtroom noted that piece the stockholders disagreed amongst this invention of expansion, at that topographic point was no prove that the invention was improper; the bulk stockholders would hold upwards as if their trouble organisation invention failed.

CONCLUSION
The courtroom directed a verdict inwards favor of defendants as well as dismissed the stockholders' electrical load seeking to compel defendants to declare dividends on the corporation's mutual stock.

Recommended Supplements for Corporations as well as Business Associations Law

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