Paulman v. Kritzer Radiant Coils, Inc.

Seitz, Chancellor:

Plaintiffs, who are sisters, each own 25% of the stock of the defendant corporation while their brother, Henry Kritzer, Sr., owns 50% of the stock. It is conceded that for the last four annual meetings there has been a failure to elect directors because of an evenly divided vote of the stockholders. This is the story of the two sisters versus the brother.

Plaintiffs have filed a petition for the appointment of a receiver for the defendant corporation under 8 Del.C. § 226 which provides as follows :

“Whenever, by reason of an equally divided vote of the stockholders, there…