Hay v. Hay

*514Donworth, J.

The liquidating trustees of The Big Bend

Land Company,' a Washington 'corporation, instituted this action to secure a declaratory judgment construing Article VI of its amended articles of incorporation. The question presented is whether the holders of cumulative preferred stock upon liquidation of the corporation are entitled to be paid accrued dividends from the corporate assets before the common stockholders become entitled to participate in the distribution thereof, the corporation having no earned surplus or net profits.

The trial court entered a judgment declaring that the…