S. Solomont & Sons Trust, Inc. v. New England Theatres Operating Corp.

The principal question, presented by the sustaining of pleas to the bill of complaint, is whether an independent, disinterested majority of the stockholders, acting reasonably and in good faith, can effectively vote that in their judgment it is not in the best interest of a corporation to assert on its behalf certain claims against its principal executives and others.

The plaintiffs, minority stockholders of the defendant New England Theatres Operating Corporation, a Massachusetts corporation (hereinafter called Netoco), by this bill in equity seek to enforce claims of Netoco and of two other…