Opinion ID: 1783662
Heading Depth: 2
Heading Rank: 1

Heading: The First Motion for a Preliminary Injunction

Text: On December 27, 1993, Perley filed a motion with the trial court to grant a preliminary injunction enjoining Tapscan from operating under the amended bylaws. After a hearing, the trial court ruled that the amendments, including the provision to block a board deadlock by shareholder vote, were properly adopted and were valid under Alabama law. Then, based on that ruling and a finding that Perley had not met his required showing of irreparable injury, the trial judge denied Perley's motion for injunctive relief. Perley appealed that ruling on January 5, 1994 (appeal 1930393). After the trial court denied Perley's first motion for a preliminary injunction, a properly noticed special meeting of shareholders and meeting of the board of directors was held on January 6, 1994. The board became deadlocked while electing officers and, according to the deadlock provision of the amended bylaws, Schley voted his 57% majority of the stock to break the deadlock. Through the use of that procedure, Schley elected himself chief executive officer, president and chief operating officer, secretary, and treasurer of Tapscan. Perley was not re-elected to his former office of president and chief operating officer. He was also ejected from any position as an employee of Tapscan.