Baggarly v. Cooper

By JUDGE HENRY H. WHITING

A minority stockholder complains of the issuance of a stock option by the vote of the directors to the majority stockholder and his wife at a differential in value of $1,243.68 per share over the agreed purchase price of $1.00 per share, which permitted them to purchase twenty-two shares of stock and thus obtain a bargain of $27,382.00. The granting of this option is allegedly justified as a bonus for unusual services rendered by the stockholder and his wife for the preceding year and would mean their total annual compensation would be $90,952.90, they having already…