Dionne v. Pierson Contracting Co.

Plaintiffs are the owners of shares of class D and class E preferred stock issued by defendant corporation. Defendant’s articles of incorporation and stock certificates provide for final redemption of class D stock by June 1, 1962, and of class E stock by June 1, 1963. The certificates state in part that “Classes of preferred stock shall be redeemed only out of surplus to the extent that the same are legally capable of being redeemed in whole or in part, at those final maturity dates.” (Emphasis supplied.)

Neither class of stock had been redeemed as of July 20, 1964, and plaintiffs brought…