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Full-Text Articles in Securities Law
Corporations - Shareholders - Power Of The Majority To Ratify Director's Fraud, Paul A. Heinen
Corporations - Shareholders - Power Of The Majority To Ratify Director's Fraud, Paul A. Heinen
Michigan Law Review
Plaintiff, a stockholder in the Kroger Company, brought a derivative suit against a subsidiary of the company and certain officers and directors of both the parent and the subsidiary. It was alleged that . Kroger's directors had fraudulently waived the company's preemptive right to a new issue of stock of the subsidiary and had then purchased the shares for their own accounts at a price far below the market value. The defendants answered that the sale had been ratified by a majority in interest of disinterested stockholders to whom all the details of the transaction had been explained, and denied …
Securities Legislation - Limitations Upon The Scope Of Rule X-10b-5, Cyril Moscow
Securities Legislation - Limitations Upon The Scope Of Rule X-10b-5, Cyril Moscow
Michigan Law Review
A syndicate attempted to acquire all of the outstanding stock in a bridge corporation pursuant to a plan to transfer the stock to a bridge commission and realize substantial returns. The price offered for the stock was well over the market price but the resale plan was not disclosed. After control of 80 percent of the stock was obtained, the syndicate's purchasing agents were installed as officers and directors. They continued to purchase the stock without revealing the plan and the anticipated profits. Upon the completion of the plan, former stockholders in the corporation brought a class action against the …