Business Associations Keyed to Hamilton
Gearing v. Kelly
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Radium Chemical Co. held four directors. A majority was necessary for transacting business. In 1955, the board consisted of Mrs. Meachm (P), Mr. Kelly Sr. (D), and Margaret Lee. In that year, Kelly Jr. (D) became a director. On March 6, 1961, Margaret Lee chose to resign at a board meeting that Mrs. Meacham (P) chose to stay away from. As a result, the Kellys (D) elected Julian Hemphill. Mrs. Meacham’s mother (P), Mrs. Gearing (P) held a large stock in the corporation and condoned the absence of her daughter from the meeting. The mother (P) brought suit to set aside the election alleging that the Kellys hadn’t met quorum to elect Julian. The appellate court found that Meacham’s (P) faction failed to validate the holding of a new election.
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