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Business Organizations Keyed to Allen
Donahue v. Rodd Electrotype Co.
Citation:
328 N.E.2d 505 (Mass. 1975).Facts
In the mid-1930s, Harry Rodd and Joseph Donahue worked at Royal Electrotype. By 1955, Rodd and Donahue were sole shareholders in Royal owning 80% and 20% respectively. In 1960, the company was renamed Rodd Electrotype and Harry’s sons soon became managers with Charles succeeding his father in 1965. In 1970, Harry wished to dispose of his remaining shares (he had already distributed a majority to his children) and Charles offered for the company to repurchase 45 shares for $800 per share. Between 1965 and 1969, the company had offered to purchase plaintiff’s shares for anywhere between $40 and $200 per share. When plaintiff learned of the purchase of Harry Rodd’s shares, she offered to sell her shares on the same terms, but her offer was rejected by defendant.
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