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Corporations Keyed to Hazen
Rosenfeld v. Fairchild Engine & Airplane Corp.
Citation:
128 N.E.2d 291 (1955)Facts
In a stockholder’s derivative action brought by plaintiff, an attorney, who owns 25 out of the company’s over 2,300,000 shares, he seeks to compel the return of $261,522, paid out of the corporate treasury to reimburse both sides in a proxy contest for their expenses. Of the amount in controversy $106,000 were spend out of corporate funds by the old board of directors while still in office in defense of their position in said contest; payment of $127,000, representing reimbursement of expenses to members of the prevailing group, was expressly ratified by a 16 to 1 majority vote of the stockholders.
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