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Recapitalization of United States Radium Corporation? The question herein presented for opinion is:- "Can the Corporation,with legal safety to itself and to its Directors, recapitalize its financial structure by distributing a portion of its surplus funds to Preferred Stockholders? The question presented presupposes the business desirability of such a program. It is also based on the assumption that a sub- stantial majority of the stockholders, both Proferred and Common, will favor such a plan. The Corporation was organized in 1917 under the laws of the State of Delaware. The present eapital structure is as follows: $7.00 Cumulative First Preferred Stock: Authorized - 4,000 shares of $50.00 each. Issued - 5,850 shares. Reserved for exchange of $7.00 Cumulative Preference Stock - 150 shares. $7.00 Cumulative Preforence Stock: Authorized - 5,000 shares of $50.00 each. Outstanding - 150 shares. Common - Class A Stock: Authorised - 16,000 shares of no par value. Issued - 14,850 shares, including 1,029 shares of Radium Lumi- nous Material Corporation Stock not exchanged. There are certain provisions which specify that in case divi- dends are not paid on the Preferred Stock, exclusive voting privileges reside in the Proferred Shareholders. No dividends have been paid on the $7.00 Cumulative First Preferred Stock since January lst, 1931, and none have been paid on the