Shanik v. White Sewing Machine Corporation

Statement op the Case. This is an appeal from a decree of the Court of Chancery dismissing the bill of complaint originally filed in that court. See ante p. 154,15 A. 2d 169. The case involves the legality and propriety of certain changes in the capital structure of the appellee, made under the following circumstances:

In 1926, the appellee had two classes of capital stock, preference stock of 100,000 shares authorized and outstanding, and of common stock 400,000 shares were authorized and 200,000 outstanding. Under the charter each share of the preference stock entitled the holder to…