Midland Truck Lines, Inc. v. Atwood

WESTHIJES, C.

This suit was filed pursuant to the Declaratory Judgment Act, Chapter 527, Mo. R. S. 1949, Sections 527.010 to 527.140 inclusive.

The plaintiff corporation on August 1, 1949, by a vote of owners of more than 75% of common stock authorized an increase of its capital stock by the issuance of 500 shares of 5% preferred stock of a par value of $100 per share.

The defendant George B. Atw'ood owned 25 shares of common stock. He objected to the authorization of the issuance of preferred stock. The question for determination is whether the action of the corporation through its shareholders…