McClanahan v. Heidelberg Brewing Co., Inc.

Opinion op the Court by

Judge Cammack

Affirming.

This case involves tbe question of whether, under KBS 271.175, which became effective in July, 1946, a majority of the stockholders of a corporation can authorize its board of directors to issue and sell additional capital stock at its market value, which is above its par value, or whether a stockholder’s preemptive right to purchase his proportionate part of the additional issue entitles him to make the purchase at par rather than market value? The lower court held that a stockholder was not entitled to purchase his proportionate part of the…