Smith v. Brown-Borhek Co.

Opinion by

Mr. Chief Justice Bell,

Plaintiff owns 516 out of a total of 8,000 shares of stock (outstanding) in the Brown-Borhek Company. He brought this stockholder’s derivative suit on October 23, 1962, to recover for the corporation $605,507, the amount of the loss allegedly resulting from negligent mismanagement by the individual defendants, who are, or were at the relevant times, officers and directors. The defendants filed an answer denying plaintiff’s material allegations and set up new matter alleging ratification of the acts in issue. Plaintiff filed a reply to the new matter in which…