Arnaud v. Stockgrowers State Bank of Ashland

The opinion of the court was delivered by

ABBOTT, J.:

This case is before the court on a question certified by the United States District Court for the District of Kansas pursuant to the Uniform Certification of Questions of Law Act, K.S.A. 60-3201 et seq.

The plaintiffs were minority shareholders in the Stockgrowers State Bank of Ashland, Kansas (Bank). The majority shareholders formed the Stockgrowers Banc Corp., a holding company, and when the plaintiffs refused to transfer their bank stock to the holding company, the Bank initiated a reverse stock split (1 for 400). The reverse stock split…