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Authors

Abstract

Petitioner was the controlling stockholder of B corporation, which had its petition for reorganization under Section 77B of the National Bankruptcy Act approved. Being dissatisfied with the present board, he applied to the district court for an order directing the trustees of B to permit him to examine the stock book for the purpose of securing names of stockholders in order to call a meeting to elect a new board. Application was denied by the district court on the ground that calling a meeting would impede rapidity of reorganization. On appeal, held, application should have been granted, for Section 77 B (c) 4 (b) permits the court to allow inspection by stockholder; 77B (c) 11 gives the debtor the right to be heard on all questions; and 77B (d) gives the debtor the right to propose a reorganization plan; if the board does not truly represent stockholders, the rights granted in the latter two subparagraphs are in effect denied stockholders; and therefore the district court abused its discretion in denying the application. In re Bush Terminal Co., (C. C. A. 2d, 1935) 78 F. (2d) 662.

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