Opinion ID: 437628
Heading Depth: 2
Heading Rank: 3

Heading: Interest of Mary Sullivan in Merger

Text: 15 Sullivan agreed to appoint his cousin, Mary Sullivan, treasurer of Patriots at a salary of $30,000 as part of the consideration for his purchase of her voting shares. Mary Sullivan was already a director of Patriots, and she joined the other directors in endorsing the merger. Appellants argue that Mary Sullivan's interest in the merger should have been disclosed because it might have motivated her to endorse the merger. 16 The proxy statement did disclose that the result of the merger would be to concentrate ownership of Patriots in the hands of William Sullivan and Mary Sullivan. Appellants have not shown how the salary agreement between William Sullivan and Mary Sullivan gave the latter any additional interest in the merger. William Sullivan, as the sole owner of the corporation's voting shares, could appoint Mary Sullivan treasurer of Patriots whether or not the merger with New Patriots was consummated.