Show IN FAVOR OF TRUSTS Opinion of Court Defining Itelation ship of Directors and Stockholders Stock-holders Trenton N J Feb 18 Justice Van Sickle today filed a written opinion of the Court of Errors and Appeals in the United Slates Steel 1 corporation case decided l a short lime ago The opinion Is In the case of the suit brought by J splnwnll lodge who sought to retrain re-train the corporation from converting 200000000 of preferred stock Into bonds The decision was in the corporations favor N The written opinion which covers thirtynine paged Is important in dc lining the relationship of directors and tockholders to corporations The opinIon opin-Ion holds that the directors have the right to vote at stockholders meetings to the extent of their stockholdings The opinion further states that it Is a vellestablls hcd rule that directors of corporations cannot legally enter into contracts where they will be especially jcnefitted without the Icnowledge or consent existed In the case at hand The opinion also says that when the ylaws of O corporation adopted In pur nuance of authority conferred by the State provide that a majority vote by Bftstockholdera meeting shun he bindIng bind-Ing on a corporation every stockholders is bound by the results oC such meeting meet-ing |