Hf liquidating company

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No one depositor had sufficient voting power to control the Association.

AHMANSON & COMPANY et al., Defendants and Appellants. J., with Peters, Tobriner, Burke, Sullivan, JJ., and Coughlin, J. Separate dissenting opinion by Mc Comb, J.) COUNSEL Darling, Mack, Hall & Call and W. United Savings and Loan Association of California is a California chartered savings and loan association that first issued stock on April 5, 1956. 1 Theretofore it had been owned by its depositors, who, with borrowing members, elected the board of directors.

Transactions in the stock that did occur were primarily among existing stockholders.

The Association has retained the major part of its earnings in tax-free reserves with the result that the book value of the outstanding shares has increased substantially. 3 and the failure of the management to provide investment information and assistance to shareholders, brokers, or the public.

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Defendants determined to create a mechanism by which they could participate in the profit taking by attracting investor interest in the Association.

Savings and loan stocks that were publicly marketed enjoyed a steady increase in market price thereafter until June 1962, but the stock of United Savings and Loan Association was not among them.

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