Rochester Gas & Electric Corp. v. Maltbie

The petitioner is a public utility corporation subject to the provisions of the Public Service Law. In November, 1938, petitioner’s stockholders voted to reduce its capital from $38,270,308 to $35,270,308 by eliminating $3,000,000 which had theretofore, by resolution of its directors, been transferred and added to its capital.

■ Direct authority is granted by statute to a stock corporation to effect such a change in its capital “so as to eliminate therefrom any or all of the amount thereof previously transferred thereto by resolution of the directors.” (Stock Corp. Law, § 36,[G].) But if the…