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Full-Text Articles in Securities Law
Corporations-Blue Sky Laws-Liability Of Officers And Directors Of Corporation For Violation, L. W. Larson, Jr.
Corporations-Blue Sky Laws-Liability Of Officers And Directors Of Corporation For Violation, L. W. Larson, Jr.
Michigan Law Review
Plaintiff sued a corporation and its president to recover money paid for purchase of stock sold in violation of the ''blue sky" laws of Michigan. The president, through correspondence, had induced plaintiff to complete the purchase. Plaintiff had judgment below against both defendants. The president alone appealed, contending among other things that he was not an "agent" within the meaning of the statute. Held, affirmed. The word "agent" in the Michigan statute1 includes officers and directors of the corporation whether they are authorized "agents" or are holding themselves out as "agents" of the corporation. Cleland v. Smart, 321 …
Torts - Violation Of Penal Statute As Civil Wrong - Bucketing - Intentional Wrong, Michigan Law Review
Torts - Violation Of Penal Statute As Civil Wrong - Bucketing - Intentional Wrong, Michigan Law Review
Michigan Law Review
A statute prohibited bucketing operations by dealers in securities and commodities, and provided penalties for such offenses. Plaintiff alleges that, acting without knowledge of defendant's illegal operations, he gave the defendant an order for the purchase of stock, which, he says, was not executed, as defendant reported, but "bucketed" in a manner prohibited by statute. Plaintiff sued to recover damages. Defendant demurred on the grounds (1) that the transaction referred to was not bucketing, but (2) that if it was, defendants were not liable to this plaintiff as the latter was not within the class of persons intended to be …