Friday, November 22, 2013

Gearing v. Kelly case brief

Gearing v. Kelly case brief summary
182 N.E.2d 391 (1962)


CASE SYNOPSIS
Appellants challenged order of the Appellate Division of the Supreme Court in the First Judicial Department (New York), that reversed judgment for appellants in petition to set aside the election of a corporate director.

CASE FACTS
Appellants who owned half of the stock of a company sought, within the provisions of N.Y. Gen. Corp. Law § 25, to set aside the election of a corporate director.

DISCUSSION

  • The court noted that appellants sought to protect their equal ownership of stock through equal representation on the board. 
  • However, such balance had been voluntarily surrendered by appellants. 
  • The court affirmed the decision, holding that appellants failed to show that justice required a new election, because they could not complain of an irregularity which they themselves caused.

CONCLUSION
Petition denied because appellants failed to show that justice required a new election of a corporate director where appellants had agreed to change in their corporate control.


Recommended Supplements for Corporations and Business Associations Law

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