Coats

An action to recover the value of certain shares of corporate stock.

According to plaintiff’s complaint all the capital stock of Chevrolet Motor Company of California was owned by Chevrolet Motor Company, and all the capital stock of the latter corporation was owned by defendant General Motors Corporation.

Plaintiff on January 1, 1924, to January 1, 1926, inclusive, was employed by the California corporation as vice-president and one of its general sales managers. He alleged that in consideration of his services the defendants, pursuant to a bonus plan which they had adopted, awarded to him certain shares of the common stock of the General Motors Corporation; that these shares were so awarded during the years 1924, 1925 and 1926, it being agreed that certificates representing the same should issue as follows: one-quarter thereof at the time of the award and one-quarter on or about the first day of January of each year thereafter until all had been issued; that on or about September 11, 1926, the defendant General Motors Corporation declared a stock dividend on the stock previously awarded. It was further alleged that from time to time, pursuant to amendments to the articles of…