Bodell v. General Gas & Electric Corp.

The Chancellor.

The complainants state their contention in this case under two heads. They are, (a) the practice complained of constitutes a conscious offer of no par value stock below its fair sales value, and, like all such offers is illegal; and (b) even if a conscious offer of no par value stock below its fair sales value may be legal if made to certain persons, it is illegal if made to the A stockholders alone in addition to their quarterly cash dividends of thirty-seven and one-half cents per share and before the B stockholders have received $1.50 per share. No attempt will be made in…