Schaad v. Hotel Easton Co.

Opinion by

Mr. Justice Horace Stern,

The question here presented is whether a dissenting owner of shares of preferred stock of a business corporation can be compelled, under a proposed scheme of recapitalization, to accept common stock in exchange for his holdings, with loss of his right to the then accrued, cumulative, undeclared and unpaid dividends.

Hotel Easton Company was incorporated in 1924 under, the General Corporation Act of April 29, 1874, P. L. 73. According to its articles of incorporation its capital structure consisted of 2500 shares of preferred stock of the par value of $100…