The Huron Milling Company v. Elihu Hedges

BRENNAN, District Judge.

This litigation challenges the propriety of the action of a director of a corporation in voting that the corporation purchase his own stock and the stock of another at a time when it is alleged that the payment of the purchase price of said stock constituted an impairment of its capital. The action is based principally upon the provisions of Section 58 of the Stock Corporation Law of the State of New York, McKinney’s Consol. Laws, c. 59 although it is claimed that the purchase, above referred to, also constituted a violation of Section 60 of the New York General…