CORPORATIONS-DISSOLUTION-POWER OF CHANCELLOR TO DECREE DISSOLUTION WHEN DEADLOCK EXISTS

Plaintiffs sought dissolution of defendant corporation pursuant to a statute allowing a petition for dissolution to be made to the chancellor by the holders of one-half of the voting stock upon a deadlock in management and voting shares. The evidence showed that there was no chance of compromise by the warring factions, that the corporate function could not be carried out, and that the plaintiffs' interests might be jeopardized. The chancellor held that unless a harmonious solution was effectively formulated within fifteen days after the filing of an opinion, a judgment containing appropriate provisions for a dissolution would be entered. On appeal, held, affirmed.

The chancellor had the power to dissolve the corporation because sufficient equitable grounds besides deadlock were shown. RKO Theatres, Inc. v. Trenton-New Brunswick Theatres Co., (N.J. 1950) 74 A. (2d) 914.