CORPORATIONS - DISSOLUTION AT SUIT OF A MINORITY STOCKHOLDER

The general statement has often been made that a court of equity has no power to dissolve a solvent corporation at the suit of a minority stockholder, in the absence of special statutory authority. However, some of the cases which seem to support this rule hedge considerably by saying that "ordinarily" or "generally" equity has no such jurisdiction. These cases would seem little different than those which hold that a court of equity has inherent jurisdiction to dissolve a corporation but will exercise it only in cases of extreme necessity. The latter seems to be the prevailing view and on principle the best.