Macht v. Merchants Mortgage & Credit Co.

The Chancellor:

The complainant is a stockholder of Merchants Mortgage & Credit Company, herein called Merchants. The sale by Merchants of all its assets to Home Finance Company was effected by virtue of proceedings purporting to have been in compliance with the requirements of what was formerly commonly referred to as Section 64A of the General Corporation Law, now appearing in the Revised Code of 1935 as Section 2097, Section 65 of Chapter 65.

Sales under the section are permitted only when the terms are approved by the directors as expedient and for the best interests of the corporation, and…