Dunlay v. Avenue M Garage & Repair Co.

The action is brought by plaintiff, who is the holder of twenty shares in defendant Avenue M Garage & Repair Co., Inc., to compel the defendants Ageno and Montalbine to return to the defendant corporation seventy-six shares of its capital stock alleged to have been issued to them improperly, and to restrain them from voting thereon. It arises out of a struggle between two factions of stockholders of a small corporation for the control of the directorate. The subject of shareholders’, rights in such cases has given rise to extended discussion. (See “ Shareholders’ Pre-emptive Rights,” by Frey,…