Lewis v. Hat Corp. of America

Marvel, Vice Chancellor:

Plaintiffs as partners are the owners of twenty shares of Hat Corporation of America’s 4cumulative preferred voting stock and bring this action for the benefit of such corporation, naming the directors of Plat Corporation and Salesky Brothers, Inc.1 as the real defendants.'

The verified complaint alleges that in April 1955 Salesky Brothers, Inc. directly and indirectly acquired sufficient voting stock of Hat Corporation to cause to be-elected to its board a majority of Salesky nominees or designees. It is further charged that thereafter, in July 1956, Hat Corporation…