In re the Arbitration between Paloma Frocks, Inc., & Shamokin Sportswear Corp.

This appeal requires us to determine whether the president of a close corporation whose stock and directorate control are equally divided may, without consulting or obtaining the approval of the board of directors, institute on his own initiative an arbitration proceeding in the name of the corporation. •

Respondent Shamokin Sportswear Corporation, a Pennsylvania corporation, inactive for some time, has four directors. The present conflict however is really between its president, George Bernstein, and Harry Toffel, its secretary. The other two directors are their respective nominees. Toffel is…