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Donahue v. Rodd Electrotype Co. of New England, Inc.
Citation:328 N.E.2d 505 (Mass. 1975)
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Harry served as the corporation‘s president and general manager, also owning a majority of the corporation’s shares (80 percent). Harry eventually retired, leaving most of his shares to his children. He also sold 45 of his shares to the corporation at $800 per share, which received board approval. Donahue’s shares, now owned by Euphemia after Joseph’s death, wished to sell their shares to the corporation under the same terms as Harry’s. The board rejected this offer. Euphemia requested the court rescind the transaction in which the board purchased Harry’s stock.
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