Plaintiff owned 100 shares of preferred stock of defendant corporation, the certificates for which, and the articles of incorporation, provided for redemption on a· given date. Subsequent to plaintiff's becoming a stockholder but prior to the redemption date of his stock, a statute was passed allowing the majority of voting shareholders of a corporation to amend its articles "without limitation." Pursuant thereto the date for redemption of plaintiff's stock was postponed twenty-five years. Under the amended articles defendant refused plaintiff's tender of the stock and demand of payment on the original redemption date. In an action against the corporation, held saving clauses of the act prevented destruction of plaintiff's rights; the provision for redemption was a contract right which the majority could not impair. Plaintiff recovered the redemption price and interest. Sutton v. Globe Knitting Works, 276 Mich. 200, 267 N. W. 815 (1936).
Michigan Law Review,
CORPORATIONS - AMENDMENT OF CHARTER - RIGHT TO REDEMPTION OF PREFERRED STOCK.,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol35/iss2/11