Question: Gay s Super Markets Inc Super Markets was a corporation formed
Gay’s Super Markets, Inc. (Super Markets), was a corporation formed under the laws of the state of Maine. Hannaford Bros. Company held 51 percent of the corporation’s common stock. Lawrence F. Gay and his brother Carrol were both minority shareholders in Super Markets. Lawrence Gay was also the manager of the corporation’s store at Machias, Maine. One day, he was dismissed from his job. At the meeting of Super Markets’s board of directors, a decision was made not to declare a stock dividend for the prior year. The directors cited expected losses from increased competition and the expense of opening a new store as reasons for not paying a dividend. Lawrence Gay claims that the reason for not paying a dividend was to force him to sell his shares in Super Markets. Lawrence sued to force the corporation to declare a dividend. Who wins? Gay v. Gay’s Super Markets, Inc., 343 A. 2d 577, 1975 Me. Lexis 391 (Supreme Judicial Court of Maine)
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