CORPORATIONS-THE FAIR AND EQUITABLE TEST IN RECAPITALIZATIONS

Authors

Robert O. Hancox, University of Michigan Law SchoolFollow

Abstract

Changes in capital structures of corporations which modify rights of security holders generally occur under one of two circumstances: (1) reorganization of insolvent corporations which affects the rights of creditors as well as shareholders and necessitates judicial supervision; and (2) recapitalization of solvent corporations involving only the relative rights of the different classes of shareholders. It is the author's present purpose to focus attention on the effect of the latter type of modification on the most zealously guarded right of the preferred shareholder--the right to accrued dividends on cumulative preferred stock.

Recommended Citation

Robert O. Hancox, CORPORATIONS-THE FAIR AND EQUITABLE TEST IN RECAPITALIZATIONS, 45 Mich. L. Rev. 183 (1946).
Available at: https://repository.law.umich.edu/mlr/vol45/iss2/4