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Business Assoctiations Keyed to Gabalson, 3rd 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. The four men agreed that each would be a director, actively participate in management, and receive equal compensation as long as each carried his share of responsibilities. Initially, they each received $35 weekly, which increased to $100 by 1955. In 1959, Pipkin sold his shares to Connor. In 1965, Wilkes opposed Quinn’s attempt to purchase corporate property at a low price, successfully advocating for a higher sale price. This created tension between Wilkes and Quinn, which affected relations with the other shareholders. In February 1967, the board voted to pay salaries to Quinn, Riche, and Connor, but not to Wilkes. At the March 1967 annual meeting, Wilkes was not reelected as director or officer and was informed his services were no longer wanted. The master found that Wilkes had consistently performed his duties competently and was willing to continue doing so, and that his termination resulted from personal animosity rather than any misconduct or neglect of duties.
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