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Equitable Limitations On Statutory Or Charter Powers Given To Majority Stockholders, Norman D. Lattin

Michigan Law Review

The object of this paper is to examine certain fundamental corporate changes which statutes or articles frequently authorize majority stockholders, or a certain proportion of all, to bring about, and to ascertain whether courts have looked simply to the literal wording of the authority and have sanctioned the action if in accord with the statute or whether they have implied equitable restrictions in spite of apparently unlimited authority in the statute or articles. How far, for example, have courts gone in the direction of the business man's idea that the corporation, after all, is a democratic affair, and that the …