Cheff v. Mathes

Carey, Justice.

This is an appeal from the decision of the Vice-Chancellor in a derivative suit' holding certain directors of Holland *497Furnace Company liable for loss allegedly resulting from improper use of corporate funds to purchase shares of the company. Because a meaningful decision upon review turns upon a complete understanding of the factual background, a somewhat detailed summary of the evidence is required.

Holland Furnace Company, a corporation of the State of Delaware, manufactures warm air furnaces, air conditioning equipment, and other home heating equipemnt. At the time of the…