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1934

Fraud

Business Organizations Law

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Full-Text Articles in Law

Corporations - Right Of Minority Stockholders To Interfere In Corporate Management Apr 1934

Corporations - Right Of Minority Stockholders To Interfere In Corporate Management

Michigan Law Review

In determining the relationship between the majority and minority stockholders of a corporation, the courts are faced with the problem of striking a correct balance between the rights of the plaintiff stockholder, who alleges that he is being oppressed by the majority, and the rights of the majority, acting through the regular corporate machinery, who allege that the corporation is being harassed by a troublesome minority. It is necessary to protect the minority from the machinations of those in control; it is likewise necessary to protect the corporation, as controlled by the majority, from the blackmailer who holds a few …


Corporations - Duty Of Director To Stockholder On Stock Exchange Sales Mar 1934

Corporations - Duty Of Director To Stockholder On Stock Exchange Sales

Michigan Law Review

The recent case of Goodwin v. Agassiz presents the problem of the duty owed by a director to existing and prospective stockholders in its most typical and difficult form. The defendants were president and general manager, respectively, as well as directors of the Cliff Mining Corporation which owned mineral lands in Northern Michigan. The stock of the corporation was listed on the Boston Stock Exchange. The defendants in their capacity of directors had knowledge of a geologist's report which forecast possible existence of copper deposits in the corporation's lands. The defendants were also directors of another mining corporation owning lands …