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Business Organizations Keyed to Macey
Brown v. McLahanan
Citation:148 F.2d 703 (1945)
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- Topic: Identifies the topic of law and where this case fits within your course outline.
- Parties: Identifies the cast of characters involved in the case.
- Procedural Posture & History: Shares the case history with how lower courts have ruled on the matter.
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- Brief Facts: A Synopsis of the Facts of the case.
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- Facts: What are the factual circumstances that gave rise to the civil or criminal case? What is the relationship of the Parties that are involved in the case. Review the Facts of this case here:
The appellant, Dorothy K. Brown, as the holder of voting trust certificates representing 500 shares of the preferred stock of the Company, brought a class action against the voting trustees and the company, seeking to set aside as unlawful an amendment of the company’s charter which purports to vest voting rights in the debenture holders. The securities involved here were issued under a plan of reorganization of the United Railways and Electric Company of Baltimore and the Maryland Electric Railways Company. Under the plan, voting rights were vested exclusively in the preferred and common stock. The amendment, which took effect soon after, effected several changes in voting rights. It eliminated the arrearage clause which had provided for exclusive voting rights in the preferred stock. It also granted voting rights to the holders of debentures. And the common stockholders would be deprived of their exclusive right to elect one director.
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