Conservative Caucus v. Chevron Corp. case brief

Conservative Caucus v. Chevron Corp. case brief summary
525 A.2d 569 (1987)

CASE SYNOPSIS

Plaintiff stockholder sought a stockholder list from defendant corporation.

CASE FACTS
Plaintiff non-profit corporation was the owner of shares of stock of defendant corporation. It sought a stockholder list in order to communicate with other stockholders about alleged economic risks of defendant's business activity in Angola and about a related resolution which was proposed to be submitted at the next annual meeting of defendant.

DISCUSSION

• After a trial the court found that plaintiff was a registered owner of shares of stock of defendant, had made a proper demand for a stockholder list, and that defendant had not borne its burden of showing that the purpose for which plaintiff sought a stockholder list was improper. 
• Plaintiff therefore was entitled to the list. 
• Defendant urged a number of reasons why the plaintiff's purpose was improper, but the court held that once a proper purpose was proven all other reasons were irrelevant.

CONCLUSION
The court granted the plaintiff's request for the stockholder list, because it demonstrated a proper purpose for the request in its desire to call stockholders' attention to a possibility that the corporation was likely to suffer economic loss if it persisted in engaging in certain business.


Recommended Supplements for Corporations and Business Associations Law