Summary
In Lennan v. Blakeley (273 App. Div. 767) a complaint was sustained in an action by the minority to compel dissolution, for the reason that its factual allegations indicated that "the directors are continuing the existence of the corporation for the sole purpose of benefiting those in control of the corporation at the expense of the other stockholders", and that its continued existence could reasonably be expected to benefit nobody else (italics supplied).
Summary of this case from Leibert v. ClappOpinion
December 22, 1947.
Present — Glennon, J.P., Dore, Cohn, Callahan and Van Voorhis, JJ. [See post, p. 846.]
The complaint sufficiently alleges facts which if established may warrant the granting of equitable relief. The allegations indicate that in disregard of the rights of the stockholders the directors are continuing the existence of the corporation for the sole purpose of benefiting those in control of the corporation at the expense of the other stockholders. Order unanimously affirmed, with $20 costs and disbursements, with leave to the defendants to answer within ten days after service of the order, with notice of entry thereof, on payment of said costs.