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Rosenfeld v. Fairchild Engine & Airplane Corp.
Citation:128 N.E.2d 291 (1955)
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In a stockholder’s derivative action brought by plaintiff, an attorney, who owns 25 out of the company’s over 2,300,000 shares, he seeks to compel the return of $261,522, paid out of the corporate treasury to reimburse both sides in a proxy contest for their expenses. Of the amount in controversy $106,000 was spend out of corporate funds by the old board of directors while still in office; $28,000 was paid to the old board by the new board after the change of management following the proxy contest, to compensate the former directors for such of the remaining expenses.
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