Meiselman v. Eberstadt

Seitz, Chancellor:

Plaintiff, a stockholder of Chemical Fund, Inc. (“Fund”), brings this derivative action for an accounting on its behalf. The defendants, in addition to the directors of Fund, are F. Eberstadt & Co., Inc. (“Company”), which provides Fund with investment advisory services and acts as principal underwriter and distributor of its shares, and F. Eberstadt and Company (“Investment Company”), an investment banking partnership, whose members own all the stock of Company. The affiliated directors of Fund are partners of the Investment Company.

At the close of the testimony the court…