New York Court of Appeals
Long Park, Inc., Suing for Itself and All Other Stockholders of Trenton-New Brunswick Theatres Company Similarly…
January 16, 1948297 N.Y. 174
Summary
The New York Court of Appeals reversed the lower courts, holding that the 1942 management agreement between Trenton-New Brunswick Theatres Company and its stockholders violates Section 27 of the New York General Corporation Law because it deprives the corporation's board of directors of its statutory power to manage the business. The court declared the agreement illegal, void, and unenforceable.