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Full-Text Articles in Law
Corporations - Pledge Of Stock - Statutory Liability Of Pledgee
Corporations - Pledge Of Stock - Statutory Liability Of Pledgee
Michigan Law Review
The owner of shares of bank stock pledged them to defendant corporation to secure a loan. Defendant had the bank issue a new certificate to it in its own name. On the failure of the bank plaintiffs, creditors, sought to hold defendant for "double" liability under statute. Held, under the Montana statute providing that pledgees should not be personally liable as stockholders, defendant was not liable despite the fact that the bank's records did not show it to be a pledgee. Mitchell v. Banking Corp. of Montana, (Mont. 1933) 24 Pac. (2d) 124.
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 …