James Coduti was a minority shareholder in the Hudson Tool & Die Corporation (Hudson). Werner Hellwig, the majority shareholder in Hudson, had been feuding with Coduti for some time. Coduti brought suit against Hellwig for refusing to authorize bonuses or dividends while Hudson was amassing large cash reserves. At the time of the suit, Hudson had certificates of deposit of approximately $775,000. 

Coduti argued that reserves of between $350,000 and $400,000 were sufficient for a business of this type. Hellwig claimed the accumulations were necessary to protect against dislocations if a major account was lost, to cover replacement costs for equipment, and to permit plant expansion. Should the court compel Hudson to declare a dividend?