Somers v. AAA Temporary Services
Illinois Appellate Court
5 Ill.App.3d 931, 284 N.E.2d 462 (1972)
- Written by Daniel Clark, JD
Facts
Lillian Raimer (defendant) and Michaelene Kay were the sole shareholders of AAA Temporary Services, Inc. (AAA) (defendant). AAA’s articles of incorporation provided for the election of three directors at the first shareholder meeting. At that first meeting, Raimer and Kay were elected, along with Wesley Somers (plaintiff), who at no point was a shareholder. On the date of what was supposed to be the third annual shareholder meeting (the second one having never occurred), Raimer and Kay sought to amend AAA’s bylaws to reduce the number of directors from three to two, which would strip Somers of his position on the board. Under Illinois statutory law, power to amend the bylaws was held only by the board of directors unless the articles of incorporation provided otherwise. Somers sued Raimer, Kay, and AAA, alleging that the shareholders had no power to amend the bylaws and that the amendment was thus void. The trial court agreed. Raimer and AAA appealed.
Rule of Law
Issue
Holding and Reasoning (Lorenz, J.)
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