Hodge v. the Cuba Co.

The complainants own 39,200 shares of the common stock of Cuba Company, a corporation of New Jersey, or 6% of the 640,000 shares outstanding. Debentures of the company will become payable January 1st, 1949, in the sum of $6,937,077, principal and interest. The board of directors have formulated a plan for refunding the greater part of this debt and purpose to consummate the plan immediately. The complainants sue to prevent their doing so, alleging that the plan is beyond the powers of the directors and unlawful in certain aspects, and that it is so unwise and disadvantageous to the company as…