Coll y Cuchi v. Arzuaga
District Court, D. Puerto Rico
Statement of Facts. The bill in this case, which is under oath, was filed May 16, 1916, and alleges that the complainant is owner of thirty shares of stock of the corporation of La Compañía Azucarera de la Carolina, of which the defendant is president. That the defendant is also the managing partner of the mercantile firm of Sobrinos de Ezquiaga, all of San Juan.
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Statement of Facts. The bill in this case, which is under oath, was filed May 16, 1916, and alleges that the complainant is owner of thirty shares of stock of the corporation of La Compañía Azucarera de la Carolina, of which the defendant is president. That the defendant is also the managing partner of the mercantile firm of Sobrinos de Ezquiaga, all of San Juan. That on July 1st a general meeting of shareholders of the company was held, at which there was a perfunctory examination of the operations of the corporation during the preceding year, and. a document showing the general balance was…
1Opinion of the Court
PCamiltoN, Judge,
delivered the following opinion:
1. Tbe right of a minority stockholder to protection by a court of equity has long been established. Indeed it is a necessity of tbe conditions under which corporations are managed. A majority of stockholders elects tbe directors, and frequently in private corporations constitute tbe actual board of directors. There is a general rule tbat a stockholder cannot take any steps against bis corporation until be has applied to tbe directors or *204other managing officials and has been refused redress. It is held, however, that this is not necessary where…
2Cases cited4 opinions
- Hawes v. OaklandSupreme Court of the United States · 1882
- Niles v. New York Central & Hudson River RailroadNew York Supreme Court · 1901
- Rumph v. AbercrombieSupreme Court of Alabama · 1847
- In re SimsNew York Supreme Court · 1890