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Business Associations Keyed to Coffee, 9th Ed.
Schnell v. Chris-Craft Industries, Inc.
Citation:
285 A.2d 437 (1971)Facts
The plaintiffs, Schnell and Safer, were dissident stockholders of Chris-Craft Industries who had been planning a proxy contest against the incumbent management. The company’s bylaws had set January 11, 1972, as the date for the annual stockholders’ meeting. After the stockholders committee filed with the SEC its intention to wage a proxy fight on October 16, 1971, management responded by amending the bylaws to advance the meeting date to December 8, 1971. Management also resisted providing a stockholder list to the plaintiffs and hired two proxy solicitation firms. The plaintiffs argued that the shortened timeframe would make it virtually impossible for them to wage an effective proxy contest, particularly given SEC clearance requirements. They learned of management’s action unofficially on October 27, 1971, and filed their action for injunctive relief on November 1, 1971.
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