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Business Associations Keyed to Hwang, 3rd Ed.
Lovenheim v. Iroquois Brands, Ltd.
Citation:
618 F. Supp. 554 (1985)Facts
Peter Lovenheim owned two hundred shares of Iroquois Brands, Ltd., a company that imported paté de foie gras from France. Lovenheim submitted a shareholder proposal requesting that the board form a committee to investigate whether the company’s French supplier used force-feeding methods to produce paté, and if such methods caused undue animal suffering, whether distribution should be discontinued. Force-feeding involves inserting a funnel ten to twelve inches down a goose’s throat and pumping up to four hundred grams of mash into its stomach. Iroquois refused to include the proposal in its 1985 proxy materials, arguing that paté sales represented only $79,000 of the company’s $141 million in annual revenues, constituting less than 0.05% of assets and resulting in a net loss of $3,121, thus falling below the five percent threshold in Rule 14a-8(c)(5).
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