Open Access. Powered by Scholars. Published by Universities.®
- Publication Year
- Publication
- Publication Type
Articles 61 - 74 of 74
Full-Text Articles in Law
Corporations - Limitation Of Actions - Nature Of Directors' Statutory Liability For Illegal Loans To Stockholders, Oscar Freedenberg
Corporations - Limitation Of Actions - Nature Of Directors' Statutory Liability For Illegal Loans To Stockholders, Oscar Freedenberg
Michigan Law Review
The creditors of a bankrupt corporation sued its directors under a New Jersey statute that made the directors liable for all corporate debts to the extent of loans illegally made to stockholders. The decision hinged on the nature of the directors' liability with respect to the New Jersey statute of limitations. The directors maintained that the action was either for a contractual debt or else for a penalty, and that in either case it was barred by limitations. Held, that the liability of the directors was neither for a simple debt nor for a penalty within the meaning of …
Constitutional Law - Due Process And The Frazier-Lemke Acts, Henry Earnest Halladay
Constitutional Law - Due Process And The Frazier-Lemke Acts, Henry Earnest Halladay
Michigan Law Review
Recent decisions involving the constitutional validity of the first and second Frazier-Lemke Acts have again raised the old spectre of due process. The questions involved related to the power of the Federal Government to regulate the rights, duties, and liabilities existent between debtors and creditors in the field of farm mortgages under the bankruptcy power. To forego an extended discussion of the history of due process as a limitation on governmental fiat, let it suffice to say that the concept, which began with Magna Carta ran through early definitions in the United States limiting it to procedural matters and attempts …
Corporations-Right Of Officers To Purchase Claims Against The Corporation And Enforce Them At Their Face Value
Michigan Law Review
Defendant was enlisted by one of the insolvent corporation's creditors, a holder of preferred stocks and debentures, to buy up landlord's claims against the corporation. These claims were large in number and amounts and were crucial elements in a successful reorganization. By means of the stock vote of the creditor, defendant was elected director of the corporation and remained as such for one month, though during this time he was not active in acquiring landlord's claims. Upon resignation as director, defendant was successful in buying up most of the landlord's claims, it being a fair inference from the facts that …
Corporate Reorganization Under Section 77b Of The Bankruptcy Act, Jacob J. Kaplan
Corporate Reorganization Under Section 77b Of The Bankruptcy Act, Jacob J. Kaplan
Michigan Law Review
In the closing hours of its legislative life the 73rd Congress adopted the amendment to the Bankruptcy Act providing for the reorganization of corporations, and designated as Section 77B. The Act was approved. by the President on June 7, 1934. The statute had had a long and checkered history in Congress. Such legislation barely failed of enactment in the preceding session when Congress first gave to natural persons availing themselves of bankruptcy procedure the right to call themselves "debtors" rather than "bankrupts," and provided a substantially similar method of reorganization for railroad corporations engaged in interstate commerce. The present statute …
Bankruptcy - Fraudulent Transfers -Trustee's Assignee
Bankruptcy - Fraudulent Transfers -Trustee's Assignee
Michigan Law Review
Since bankruptcy proceedings contemplate a sale of the debtor's assets, the importance of knowing what the trustee may sell is at once obvious. One must, however, go further and inquire as to the rights of purchasers from the trustee. This question assumes importance to the trustee, since it determines what he may sell, and is also important to the purchaser, since it determines what he may buy. The answer determines the efficiency of our bankruptcy machinery. In this comment we propose to consider one phase of this general question: May the trustee assign his right to set aside a fraudulent …
Bankruptcy - Suspension Of State Statutes Regulating General Assignments
Bankruptcy - Suspension Of State Statutes Regulating General Assignments
Michigan Law Review
An insolvent debtor made a voluntary assignment of. all his property to the defendants for the benefit of his creditors. The plaintiff, a nonassenting creditor, brought garnishment proceedings against the defendants, contending that the state statute governing general assignments had been suspended by the National Bankruptcy Act. The Wisconsin Supreme Court was of the opinion that only that portion of the Act which provides for a discharge of the assignor from his debts was suspended. On appeal to the United-States Supreme Court the decision was affirmed. Pobreslo v. Joseph M. Boyd Co., 287 U. S. 518, 53 Sup. …
Bankruptcy -- Fraudulent Conveyances -- Dealings Between One-Man Corporations Owned By One Person
Bankruptcy -- Fraudulent Conveyances -- Dealings Between One-Man Corporations Owned By One Person
Michigan Law Review
H was president of corporations A, B, and C. Through his control of B and C he secured personal advances approximating $600,000. This money he loaned as personal funds to A which through its directors and officers, in their official capacities, was aware of the source of the funds though not of the exact amounts nor of the fact of unlawful diversion. F bank held certain matured promissory notes of B upon which H had become obligated as guarantor. B and H were in financial difficulties and F bank threatened to throw H into bankruptcy.A thereupon, and …
Receivers - Consent Receivership Not Allowed In Michigan
Receivers - Consent Receivership Not Allowed In Michigan
Michigan Law Review
A general creditor filed a bill alleging that the defendant corporation's assets as shown by its books have a value in excess of its indebtedness but that it cannot meet its current obligations although its assets, when converted into money would be sufficient to meet them and continue its business; that several suits have been instituted by defendant's creditors and that if executions are issued and levies made, defendant will be compelled to cease operations and losses will be suffered by all of defendant's creditors, whereas, if a receiver is appointed to operate its business their claims may be paid …
Interest On Claims In Receivership Proceedings, Ralph E. Clark
Interest On Claims In Receivership Proceedings, Ralph E. Clark
Michigan Law Review
Outside the cases of receivership, the Supreme Court of the United States has said: "We reach the conclusion that whatever may have been the English and early American rule, the tendency in Virginia as elsewhere in this country, is to allow interest on contracts to pay money from the date that the debt becomes due."'
The Federal Bankruptcy Act And Its Effect On State Insolvency Laws, Evans Holbrook
The Federal Bankruptcy Act And Its Effect On State Insolvency Laws, Evans Holbrook
Articles
Since Sturgis v. Crowninshield, 4 Wheat. 122, it has been clear that State Insolvency Laws were valid (within certain well-defined limits) during the non-existence of a Federal Bankruptcy Act, and that upon the enactment of a Federal Bankruptcy Act the State laws were superseded and suspended so far as they were in conflict with the Federal legislation. The difficulty has been in determining when there was such conflict, and it has arisen in various ways. For instance, the Federal Bankruptcy Act permits any natural person to become a voluntary bankrupt, but provides that no involuntary proceedings shall be taken against …
Execution Sales As Preferential Transfers In Bankruptcy, Evans Holbrook
Execution Sales As Preferential Transfers In Bankruptcy, Evans Holbrook
Articles
In the recent case of Golden Hill Distilling Co. v. Logue, 243 Fed. 342, the Circuit Court of Appeals for the Sixth Circuit holds that a "creditor who recovers a judgment, by consent or in invitum, and by execution sale collects his money within four months preceding bankruptcy, and with reasonable cause to believe [that a preference would thereby be effected] receives a voidable preference, which he must repay to the trustee." This question is one that has vexed the bankruptcy courts ever since the Supreme Court of the United States in Clarke v. Larremore, 188 U. S. 486, declined …
When Is A Preferential Transfer Required To Be Recorded?, Evans Holbrook
When Is A Preferential Transfer Required To Be Recorded?, Evans Holbrook
Articles
In the recent case of Carey v. Donohue, 36 Sup. Ct. 386, the Supreme Court of the United States has passed on a question that has for years been vexing the Circuit Courts of Appeals, namely: When is the recording of a preferential transfer "required" under § 60 of the'Bankruptcy Act of 1898 as amended in 1903 and 1910. § 60a (as amended in 1903) defines a preference as a transaction by which property of an insolvent debtor is transferred, within four months before his bankruptcy, in such a way that the debt owing to one of his creditors will …
A Surety's Claim Against His Bankrupt Principal Under The Present Law, Evans Holbrook
A Surety's Claim Against His Bankrupt Principal Under The Present Law, Evans Holbrook
Articles
The peculiar three-sided relationship of principal, surety and creditor gives rise to many vexatious questions of law, and one of the most interesting of these vexatious questions is that of the relationship between surety and principal in the case of the latter's bankruptcy. Under such circumstances, the creditor's right is fairly simple; he may prove his debt against the principal, take such dividend as may be declared, and recover the balance of the debt from the surety, his remedy against the latter being expressly saved by Sec. 16 of the present Bankruptcy Act.1 But the position of the surety is …
Foreign Voluntary Assignments For The Benefit Of Creditors, Edson R. Sunderland
Foreign Voluntary Assignments For The Benefit Of Creditors, Edson R. Sunderland
Articles
AlI laws concerning property rights are based upon the broad - doctrine that every person who owns property may dispose of the same as he sees fit. The right of disposal of property is inseparably united to the right of property itself, and indeed is an essential element of the concept of property. It might even serve as a definition of property, viewing property as that which one may dispose of,-a definition too general, it is true, for practical purposes, but undoubtedly a correct and valuable metaphysical theorem