Case Study: Guilfoyle v. Olde Monmouth Stock Transfer Co.
In this case study, we look at the consequences of delaying the amendment of the stock certificate to allow the stock's transferability. Because of such delay by transfer agent, a stockholder was not able to sell his shares, which eventually plummeted due to fraud investigations of the company. The holder of the stock sued the transfer agent for failing to appropriately allow the transfer and sale of his shares. This court focused on the legal duties of the transfer agent and when the agent is said to have violated his fiduciary duty to the stockholder.
The case can be found here: