Lichens Co. v. Standard Commercial Tobacco Co.

Harrington, Chancellor:

The complainant, a stockholder of the defendant, a solvent corporation, seeks to have a receiver appointed to wind up its affairs, alleging fraud and mismanagement by its officers and imminent danger of loss of property which might cause insolvency.

The demurrer raises two questions:(1) Does the Court of Chancery have the inherent power, upon the application of a minority stockholder, to wind up the affairs of a solvent corporation and to appoint a receiver for that purpose because of fraud and gross mismanagement by its officers?(2) If it has that power, are the…