Frankel v. Donovan

Marvel, Vice Chancellor:

Plaintiff, a stockholder of the corpo-

rate defendant suing in a representative capacity for all stockholders, complains that stock options granted in 1951 and 1952 by the corporate defendant to fifty of its executive employees under restricted stock option plans adopted by directors subject to approval by the stockholders,1 were invalid when issued because said options were allegedly gifts,2 having been granted without consideration. The forty-nine individual defendants have either exercised or hold exercisable options, the options of one deceased officer having lapsed…