CORPORATIONS - RESERVED POWERS - ABROGATION OF PREFERRED DIVIDEND ARREARAGES BY CHARTER AMENDMENT, MERGER, OR CONSOLIDATION

Authors

William D. Sutton, University of Michigan Law SchoolFollow

Abstract

The "malignant" decision in the Dartmouth College case fathered the passage of reserved-power statutes in virtually all the states. These statutes, in turn, when opposed by the retaliatory fundamental-rights safeguards invoked by the courts for the protection of corporate stockholders, procreated problems which have grown more baffling and incorrigible with age. Not the least among these are proposed changes in the liabilities or rights of stockholders, especially the attempted abolition of unpaid accrued dividends upon cumulative preferred stock where there exists a surplus which might lawfully be applied to the payment of such dividends.

Recommended Citation

William D. Sutton, CORPORATIONS - RESERVED POWERS - ABROGATION OF PREFERRED DIVIDEND ARREARAGES BY CHARTER AMENDMENT, MERGER, OR CONSOLIDATION, 39 Mich. L. Rev. 1201 (1941).
Available at: https://repository.law.umich.edu/mlr/vol39/iss7/8