Providence v. Worcester Co. v. Baker, 378 A.2d 121 (1977) p.295

SUBJECT

class voting and weighted voting

FACTS

A shareholder was entitled to one vote for each of the first fifty shares owned, and one vote for every twenty shares in excess of fifty. No shareholder could vote in his or her own right more than on fourth of the total outstandin shares.

ISSUE

Whether a provision restricting voting rights based on the number of shares held by an individual shareholder is permissible.

RULE

Voting rights may be determined by number of shares held.

HOLDING

The Delaware Supreme Court upheld a provision in a corporation's Articles of Incorporation restricint the voting rights based on the number of shares held by an individual shareholder. The provision limited voting rights based on the number of shares held by an individual shareholder.

Created on: Wednesday, October 13, 1999 at 12:22:08 (PDT)