Ferrell v. Collamore (In Re Alpha-Omega Communications, Inc.)

OPINION

EMIL F. GOLDHABER, Chief Judge:

The first of two issues in the case at bench is whether after the filing of a chapter 11 petition a majority of the stock holders of a debtor may divest the president of the debtor from office. The second issue is whether a majority of the board of directors may issue to themselves stock after the filing of the petition due to their “revaluation” of a capital contribution made in cash at the time of incorporation and due to the prepetition rendition of services to the debtor. For the reasons outlined herein, we conclude that the president may be ousted…