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Business Associations Keyed to LoPucki, 2nd Ed.
Johnson v. Tago, Inc.
Citation:
188 Cal. App. 3d 507 (1986)Facts
Tago, Inc. was founded by Helga and Robert Johnson as a partnership in 1971 and incorporated in 1973. By 1984, the Johnsons owned approximately 41% of Tago’s outstanding stock, with Helga serving as a director, president, and technical director, while Robert was chief executive officer and a director. On June 28, 1984, the three other members of Tago’s five-member board (Antell, Orzech, and Thompson) voted to remove the Johnsons from their officer positions. The Johnsons refused to vacate their offices without a court order. The next day, the Johnsons filed a lawsuit seeking to prevent their termination until a shareholders’ meeting was held. Tago then filed its own action seeking to prevent the Johnsons from exercising any powers as officers. The trial court issued a preliminary injunction ordering a shareholders’ meeting and directing Tago to pay all proxy solicitation expenses for both sides and to pay 41% of $25,000 as a retainer for the Johnsons’ attorneys’ fees.
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