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Business Associations Keyed to Coffee, 9th Ed.
Wilkes v. Springside Nursing Home, Inc.
Citation:
370 Mass. 842, 353 N.E.2d 657 (1976)Facts
In 1951, Wilkes, Quinn, Riche, and Pipkin formed Springside Nursing Home, Inc., each investing $1,000 for ten shares of stock. They agreed that each would be a director, actively participate in management, and receive equal compensation. Initially, Wilkes served as treasurer and was responsible for building maintenance. By 1955, each shareholder received $100 weekly. In 1959, Pipkin sold his shares to Connor. In 1965, Wilkes successfully advocated for a higher price when selling corporate property to Quinn, causing their relationship to deteriorate. By 1967, the other shareholders voted to terminate Wilkes’s salary, removed him as an officer and director, and informed him his services were no longer wanted. The master found this was not due to misconduct but resulted from the personal desire of the other shareholders to prevent Wilkes from receiving money from the corporation, despite his continued willingness to perform his duties.
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