SINCLAIR OIL CORPORATION, Defendant Below, Appellant, v. Francis S. LEVIEN, Plaintiff Below, Appellee, 280 A.2d 717

Summary

Plaintiff, stockholder of a subsidiary corporation, brought a derivative action against the parent corporation for an accounting of excessive dividends and a breach of contract between two subsidiaries. The court granted the order to plaintiff. The supreme court reversed the order as to dividends because the dividends were paid fairly to all stockholders, and it affirmed the order as to breach of contract because the intrinsic fairness standard applies to dealings between subsidiaries.