Document: 386 U.S. 162 87 S.Ct. 927 17 L.Ed.2d 834 Betty LEVIN, Petitioner,v.MISSISSIPPI RIVER FUEL CORPORATION et al. ALLEGHANY al., Petitioners, v. MISSISSIPPI Nos. 352 and 359. Argued Jan. 19, 1967. Decided Feb. 27, Breck P. McAllister John Lowenthal, New York City, for petitioners. Robert H. McRoberts, St. Louis, Mo., Dennis G. Lyons, Washington, D.C., respondents. Mr. Justice CLARK delivered the opinion of Court. 1 The ultimate issue in these cases is whether holders Class B stock Missouri Pacific Railroad Company (MoPac) are entitled to vote separately, as a class, on proposed plan consolidation MoPac Texas Railway (T & P) into newly formed M). An application has been filed with Interstate Commerce Commission requesting permission effect under §§ 5(2) 5(11) Act, amended, 54 Stat. 905, 908 (1940), 49 U.S.C. 5(11). MoPac's Board Directors announced that its shareholders not separately apart from A shareholders, it intends submit only collective shareholders. 2 Three separate declaratory judgment actions were by different seeking declaration requires approval shares majority vote. Upon limited cases, District Court held Articles Association prohibited unless class voting was observed § 5(11)1 adopting state law, required each 233 F.Supp. 747. Appeals reversed ground that, despite 'plenary character * consequent preemptive nature' compelled contrary result. 359 F.2d 106, at 119. We granted certiorari. 385 814, 86, 53. have concluded provided 5(11), controlling point must, therefore, be reversed. I. 3 Background Parties Litigation. 4 MoPac, corporation, an interstate common carrier railroad. It had reorganization proceedings 77 Bankruptcy 11 205, until January 1, 1955.2 After those terminated, corporation's preferred replaced two classes $100 stated capital no par shares: A, which preferentially noncumulative dividends exceed $5 per share annually, B, all earnings equity excess preferences. Association, Art. VII, D(3), provide shall save four types corporate change, none effected without consent record shares. specified changes are: (1) issuance additional shares; (2) creation or any obligation security convertible exchangeable (3) alteration change 'the preferences, qualifications, limitations, restrictions special relative rights Stock Stock'; and, finally, (4) amendment elimination foregoing requirements. 5 1,849,576 39,731 outstanding. T P incorporated Act Congress 1871 also railroad owns 82.86% outstanding stock. Mississippi River Fuel Corporation (Mississippi) Delaware corporation (57.95%) MoPac. Alleghany (Alleghany) Maryland (51%) subject trust. M organized purpose being consolidated company upon merger 6 agreement approved December 1963. exchange (without regard class) new (other than owned MoPac) basis one 4.8 company. In 1964, three companies joint order authorizing securities 20a. this advised would stockholders, approval, May 1964 collective, rather 7 There total six individual petitioners, whom nominal number shares, owns, aforesaid, respondents P, Mississippi, some their directors officers, first suits cause involves prior submission Commission; second third subsequent thereto. Each attacks plans consolidation, alleging, among other things, much greater value unfair; violate law (and, Act) result irreparable injury complaint prays At trial parties agreed court should pass question. certified permitted interlocutory appeal 28 1292(b). Further stayed. 8 As we indicated, even though demanded such vote, nevertheless 'impressed significance national transportation policy emphasis exclusive plenary nature.' F.2d, felt virtue federal statute, conclude apply general standard rights, i.e., honor exception, voting, law. II. 9 Conclusion. 10 believe erred so construing Act. That section specifically provides voluntary consolidations railroads must assent 'of (vote shares), applicable State case assent, votes *.' held, 'bows direction law.' 114. Both decided Mo.Rev.Stat. c. 351 (1966), V.A.M.S., both courts found, 351.055(3) authorizes 351.270 where articles incorporation require concurrence portion series thereof, chapter respect action, provisions control section.' But since 351.4253 least two-thirds control, 351.270. think not. using language 'required law,' embraced held. This included exception corporations whose voting. permitting reached, follows if comes within requirements D(3) association, required. found did come D(3). clear disturb finding, although precisely what point, appears say seem require' while later assumes they do so. Subsequently notes 'not persuaded call event, agree plan. provision 'shall (c) alter Stock' clearly include here. consolidating already controls, will annually participate equally now enjoys present preferences lose features. effectuation 'result holdings engulfed larger holdings.' 110. apropos note here remains $100, approximately $6,500 share. proposes which, values, like exchanging rabbits horse. Moreover, final proviso itself proposed. Under entirely eliminated one. argues 'company action.' cannot agree. boards drew up request Commission. certainly action' terms Articles.4 Indeed, see occasion remanding consideration assumed does decide it. Effective judicial administration dispose matter not, course, reach merits concern instance. Any reference construed way passing merits. With hold here, applied turn, class-vote basis. 12 is, remanded further consistent opinion. 13 ordered. 14 Judgment directions. 15 FORTAS took part decision cases. Section 5(11): 'The authority conferred plenary, participating resulting transaction thereunder, full power (with purchase sale, lease, merger, majority, regular meeting notice purpose, thereof called purpose) carry own operate properties exercise franchises acquired through said invoking See Pac. R. Co. Reorganization, 290 I.C.C. 477 (1954); re Co., 129 392 (D.C.E.D.Mo.1955), aff'd sub nom. 1/4% S.S.B.C. Thompson, 225 761 (C.A.8th Cir. 1955). 351.425 provides, pertinent part: '* receiving affirmative meeting, corporations.' interesting inserted Association. Commission's provided: certificate (of reorganized corporation) permit authorization time either but authorize stock, less outstanding.' 477, 665.

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