Court Opinion

ID: 9620479
Source: CourtListenerOpinion
Date Created: 2023-08-22 05:42:40.073883+00
Date Added: 2024-06-11T18:04:50.803191
License: Public Domain

CALLISTER, Justice
(dissenting).
I dissent. As stated in the main opinion, a two-thirds vote of the stockholders is necessary to amend the articles of incorporation. In order to change the membership of the hoard of directors from four to five requires an amendment of Article XXI. Had this last-mentioned article merely contained the provision that the board consist of “not less than four nor more than six” and nothing more, I would agree that a simple majority vote of the stockholders could set the membership of the board at four, five, or six. Such action would not he an amendment. However, it cannot be denied that to change the minimum and maximum number of directors would require an amendment by a two-thirds vote of the stockholders.
In the instant case, the incorporators did not see fit to merely provide for a minimum and maximum number of directors, they went further and provided for a fixed number (four) to serve “until otherwise determined by the stockholders.” This latter provision is as much a part of the article as the other and, to change it, must be amended by a two-thirds vote of the stockholders.