Crowley v. Communications for Hospitals, Inc.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• ordering, in derivative action brought by frozen-out minority, that majority return wrongly appropriated funds to corporation and distribute them as dividend to shareholders
• compliance with verification requirement of rule 23.1 waived where defendants did not object and allegations were verified at trial
• compensation to majority shareholders of large percentage of corporation’s profits deprived minority shareholders of their equity
• excessive compensation that “deprives the company, and therefore its stockholders, of all opportunities for growth in net worth, serves no legitimate business purpose”
• claim of excessive compensation and “freeze out” required to be brought as derivative action
• majority froze out minority stockholder by paying themselves excessive compensation, refusing to declare dividends, failing to redeem minority shares on same basis as was available to the majority, and attempting to purchase minority shares at bargain price

Source: CourtListener parenthetical corpus (CC0).