Everett v. Phillips

Lehman, Ch. J.

The plaintiff is the owner of 100 shares of the “ participating stock ” of Empire Power Corporation. The issued and outstanding capital stock of the corporation consists of 77,000 shares of six per cent cumulative preferred stock with a stated value of $7,133,000; 400,000 shares of “ participating ” stock with a stated value of $3,150,000, and 400,000 shares of common stock with a stated value of $1,000,000. The directors of the corporation and members of their families owned all the common stock and large amounts of the preferred stock and the “ participating ” stock. At the…