Continental Securities Company, Stockholders in the Interborough Rapid Transit Company

Summary

The Court affirmed the lower court's denial of the defendants' motion for judgment on the pleadings, holding that the complaint sufficiently stated a cause of action and satisfied the statutory demand requirement, because the plaintiffs had demanded action from the board of directors and the board's refusal was alleged. The decision also clarified that a stockholder need not seek approval from the body of stockholders when such a demand would be futile.