Gaskill v. Gladys Belle Oil Co.

The Chancellor.

In this matter the question presented is

whether or not holders of preferred stock may receive out of the capital assets of the dissolved corporation payment in full of its par value together with all unpaid dividends in arrear before anything is received by the common stock.

The certificate of incorporation of the dissolved company provided for two kinds of stock — preferred and common. The only preference specified in the certificate as belonging to the preferred stock was set forth in the following language:

"The holders of the preferred stock shall be entitled to receive out…