ESSENTIAL ENTERPRISES CORP. v. AUTOMATIC STEEL PROD.


164 A.2d 437 (1960)

ESSENTIAL ENTERPRISES CORPORATION, a corporation of the State of Delaware, Plaintiff, v. AUTOMATIC STEEL PRODUCTS, INC., a corporation of the State of Delaware, Frank B. Johnston, Henry G. Hotchkiss and John R. Maher, Defendants.

Court of Chancery of Delaware, New Castle.

September 22, 1960.


Attorney(s) appearing for the Case

Louis J. Finger of Richards, Layton & Finger, Wilmington, for plaintiff.

Henry Horsey of Berl, Potter & Anderson, Wilmington, for individual defendants.


SEITZ, Chancellor.

This action was commenced as one under 8 Del.C. § 225 by a majority stockholder of the corporate defendant to determine the validity of action taken to remove certain directors and the election of others to replace them. By a cross-claim the right of the board to remove its then chairman Johnston was also raised.

The court determined that the three directors involved were invalidly removed and in consequence their successors were not...

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