Drivas v. Lekas

In this stockholder’s action the plaintiff, who sued individually and on behalf of other stockholders in the corporation, seeks an allowance under section 61-a of the General Corporation Law, and the defendant directors likewise apply for an allowance. There seems to be no interpretation of this section on whether both sides to the litigation can obtain allowances, which may be due to the fact that the statute is relatively recent. The theory upon which the plaintiff applies is that the Court of Appeals has decided that $5,650 should have been awarded to the corporation, payable by the two…