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    SmartBrief enables case brief popups that define Key Terms, Doctrines, Acts, Statutes, Amendments and Treatises used in this case.

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    Business Organizations Keyed to Chasalow, 3rd Ed.

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    Business Associations Keyed to Epstein, 5th Ed.

    Eisenberg v. Flying Tiger Line, Inc.

    Citation:

    451 F.2d 267 (1971)

    Facts

    Max Eisenberg owned shares in Flying Tiger Line, Inc., a Delaware corporation with its principal place of business in California. In 1969, Flying Tiger implemented a complex reorganization plan that involved creating a wholly owned Delaware subsidiary called Flying Tiger Corporation (FTC), which in turn created another subsidiary called FTL Air Freight Corporation. Flying Tiger then merged into FTL, with FTL as the surviving entity. FTL changed its name to “Flying Tiger Line, Inc.” and continued the business operations, while the original Flying Tiger shareholders received shares in FTC, the holding company. Eisenberg alleged this reorganization deprived minority shareholders of voting rights and influence over the operating company’s affairs. When he brought suit to enjoin the reorganization, Flying Tiger moved to require him to post security for costs under New York Business Corporation Law § 627, which applies to derivative actions. The district court granted the motion, requiring $35,000 security, and dismissed the case when Eisenberg failed to comply.

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    Eisenberg v. Flying Tiger Line, Inc.