Business Associations Keyed to Hamilton
Salgo v. Matthews
Matthews (P) was head of faction that wanted to take control of General Electrodynamics Corporation from the president, Salgo (D). Matthew intended to win via a proxy war. At a special stockholder meeting, Salgo (D) appointed Meer (D) as election inspector. Matthews (P) submitted numerous proxies, but Meer (D) refused, certain that some had been executed in Matthew’s (P) favor by another corporation with stock in General Electrodynamics. The other corporation, Pioneer Casualty was in receivership and beneficial title to its shares were in ownership of Shepherd who was also bankrupt. Court order authorized Pioneer’s receiver to give Shepherd proxy vote of Pioneer’s shares, Meer (D) refused to accept proxies executed by Shepherd on the grounds that only Shepherd’s bankruptcy trustee had the right to vote for shares. Matthews (P) filed suit, and trial court mandated Salgo (D) to reconvene the shareholder’s meeting for the purpose of declaring Matthew (P) and his faction election winners. Salgo followed the mandate, but also appealed.
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