Kennedy v. Emerald Coal & Coke Co.

The Vice-Chancellor:

Complainants (including the interveners) protest against the execution of a plan relating to the financing of respondent, as in violation of their rights as shareholders. The features of the plan objected to are the issuance of 122,457 shares of respondent’s capital stock to three corporations having interlocking directors with respondent; and respondent’s entering into contracts with two of those corporations to supply them with a substantial portion of the coal it is expected to produce during the next *304twenty years. The interlocking directors and the persons whom…