CORPORATIONS - CORPORATE REORGANIZATION UNDER CHARTER AGREEMENT -VALIDITY OF ENABLING STATUTES

Authors

Abstract

That reorganization is vexatious, frequently long drawn out and costly, is universally conceded. In the absence of statutory provisions, the only known judicial process whereby a court may set a reorganization in motion is a foreclosure and sale, or sale by court decree in an equity receivership. In most cases the real and only purpose of a reorganization is to work out a capital structure which the business of the corporation will support, hence, the sale under foreclosure or by court decree is a device rather than an independent end. As a result, much confusion and uncertainty exist under the authorities as to just how far a court of equity can and will go in protecting the best interests of those concerned.

Recommended Citation

CORPORATIONS - CORPORATE REORGANIZATION UNDER CHARTER AGREEMENT -VALIDITY OF ENABLING STATUTES, 30 Mich. L. Rev. 934 (1932).
Available at: https://repository.law.umich.edu/mlr/vol30/iss6/8