Consolidated Film Industries, Inc. v. Johnson

Layton, C. J.,

delivering the opinion of the court:

The dispute between the parties, as it is presented, grows out of that part of the proposed amendment to the certificate of incorporation of the appellant which, in the reclassification of the capital stock, seeks to cancel ■ dividends accrued through passage of time on the cumulative preferred shares.

The question is whether the appellant corporation, under Section 26 of the General Corporation Law, Rev. Code 1915, § 1940, as amended by Section 10, c. 85, Vol. 35, Del. Laws, approved March 2, 1927, had the power to capitalize, alter or…