GAMBLE-SKOGMO, INC. v. SAKS


122 A.2d 120 (1956)

GAMBLE-SKOGMO, Inc., Founders Incorporated, and Associates, Inc., Appellants, v. Judith SAKS, Appellee.

Supreme Court of Delaware.

April 18, 1956.


Attorney(s) appearing for the Case

Ernest S. Wilson, Jr., of Morford & Bennethum, Wilmington, for appellants.

William S. Potter and James L. Latchum of Berl Potter & Anderson, Wilmington, and Leonard I. Schreiber and Sidney L. Garwin, New York City, for appellee.

SOUTHERLAND, C.J., and WOLCOTT and BRAMHALL, JJ., sitting.


SOUTHERLAND, Chief Justice.

The question in this case is whether the owner of stock held in a margin account and repledged by the broker is, under the provisions of the margin agreement between them, an equitable stockholder entitled to maintain a stockholder's derivative suit.

The suit below is brought by plaintiff below, in right of the corporation, to remedy alleged wrongs. Defendants challenged her right to sue on the ground that she is not a stockholder...

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