Giuricich v. Emtrol Corp.

HERRMANN, Chief Justice.

The plaintiffs appeal the denial by the Court of Chancery of their petition for the appointment of a custodian pursuant to 8 Del.C. § 226(a)(1), 1 despite the existence of a shareholder deadlock between the plaintiffs, who own 50% of the stock of defendant Emtrol Corporation (hereinafter “Em-trol”), and Continental Boilerworks, Inc., (hereinafter “Continental”), which controls the remaining 50% of the stock. This deadlock has prevented the election of successor directors indefinitely. This is a case of first impression in this Court.

i.

Plaintiffs are officers and…