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5th Circuit Affirms Dismissal Of Franchise’s Bankruptcy Petition As Unauthorized

Mealey's (June 12, 2018, 4:58 PM EDT) -- NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on May 22 held that federal law does not prevent a bona fide shareholder from exercising its right to vote against a franchise’s bankruptcy petition just because the shareholder is also an unsecured creditor, finding that the issue of corporate authority to file a bankruptcy petition is left to state law and nothing there would nullify the shareholder’s right to vote against the bankruptcy petition (In Re:  Franchise Services of North America, Incorporated v. United States...
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