CORPORATIONS-DIVIDEND RIGHTS-ELIMINATION OF DIVIDEND ACCUMULATIONS BY DIRECT CHARTER AMENDMENT

The many recent discussions of the problem of dividend accumulations show that plausible grounds exist for reaching a conclusion in favor of either the minority preferred shareholder who wishes to retain these rights, or the majority preferred and common shareholders who, with the corporate management, desire to eliminate or circumvent them. It is not the purpose of this comment to re-open that controversy, though it may be observed that the current trend of both legislation and decision favors the interests of the latter group. Rather, this discussion assumes that the current trend is the correct view and will examine the possibilities of eliminating dividend accumulations by direct charter amendment.