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Business Organizations Keyed to Cox
Bangor Punta Operations, Inc. v. Bangor & Arrostook R.R.
Citation:
417 U.S. 703 (1974)Facts
Prior to October 1964, Bangor & Aroostook Corporation (B & A) held 98.3% of the stock of the Bangor & Aroostook Railroad Company (BAR). In October 1964, B & A sold its BAR stock to Bangor Punta. Bangor Punta held the stock for five years, and then sold it in 1969 to Amoskeag Co. for $5 million. Amoskeag later acquired additional shares which gave it ownership of more than 99% of Bar. In 1971, BAR filed an action against Bangor Punta, alleging 13 counts of alleged mismanagement, misappropriation, and waste of BAR’s corporate assets occurring during the period from 1960 through 1967 when B & A and then Bangor Punta controlled Bar.
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