Holland v. National Automotive Fibres, Inc.

The Chancellor:

The defendant was incorporated on January 28, 1928. Its authorized capital consisted of ten thousand shares (each of the par value of one hundred dollars) of seven per cent, cumulative preferred stock, and four hundred and fifty thousand shares of common stock without nominal or par value. The preferred stock was convertible into common stock at the rate of six shares of common for one of preferred.

On March 15, 1930, there were outstanding 7,154 shares of preferred and 217,086 shares of common. On that date the certificate of incorporation was amended so as to provide for a…