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Business Associations Keyed to Bainbridge
Dodge v. Ford Motor Co.
Citation:
170 N.W. 668 (1919)Facts
Ford Motor Co. was incorporated in 1903 with an investment of $150,000. Henry Ford was the majority shareholder and the brothers Horace E. Dodge and John F. Dodge were among the other shareholders. In 1916, Henry Ford, who owned 58 percent of the common shares, announced that in the future no special dividends would be paid. Profits would be reinvested in the business. The Dodge brothers owned 10 percent of the common shares; they were not members of the board of directors and were not employed by the company. Under Henry Ford’s announced policy they could expect to receive only $120,000 per year for the indefinite future. John Dodge met with Henry Ford, complained of the new dividend policy. The Dodge brothers sued.
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