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Full-Text Articles in Law

Corporations - Pledge Of Stock - Statutory Liability Of Pledgee Dec 1933

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.


Corporations - Pre-Emptive Rights In Treasury Shares Nov 1933

Corporations - Pre-Emptive Rights In Treasury Shares

Michigan Law Review

Plaintiff, a former shareholder, sued the directors of a corporation for damages arising out of their alleged refusal to allow him pre-emptive rights in stock that had been issued, re-purchased by the corporation from the shareholders, and re-issued by the defendant-directors to themselves. Upon appeal from an order dismissing the complaint for insufficiency, held, that the order be reversed on the law. Hammer v. Werner, (App. Div. 1933) 265 N. Y. S. 172.


Trusts - For Employees - Definiteness Of Cestui Jun 1933

Trusts - For Employees - Definiteness Of Cestui

Michigan Law Review

The testator by his last will and testament devised a saw mill owned by him to certain trustees, the will reading, "I suggest that my said trustees sell the mill" for a specified price about half the estimated value of the property to a corporation to be organized by "my employees." There was a further provision reading, "I suggest that all the employees who have been in my employment for five years or longer should hold stock in such corporation, should they so desire in such proportions as my trustees shall presence." After the corporation had been organized, the incorporators …


Corporations - Dissenting Stockholder's Suit -Conditional Decree Jun 1933

Corporations - Dissenting Stockholder's Suit -Conditional Decree

Michigan Law Review

The directors and majority stockholders of a Minnesota mining corporation which. needed financing were also the directors and majority stockholders of another Minnesota mining corporation which had a large surplus. They decided to consolidate the two in order to finance the one, offering the stockholders of each corporation a share for share exchange, which would result in the stockholders of the unsuccessful corporation having a 9/16 control of the consolidated corporation. Dissenting stockholders, holding 18/100 of 1% of the total stock in the successful corporation, brought a bill to restrain the consolidation and to have a receiver appointed to take …


Receivers - Consent Receivership Not Allowed In Michigan May 1933

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 …


Bankruptcy -- Fraudulent Conveyances -- Dealings Between One-Man Corporations Owned By One Person May 1933

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 …


Corporations - Interference With The Internal Affairs Of A Foreign Corporation Mar 1933

Corporations - Interference With The Internal Affairs Of A Foreign Corporation

Michigan Law Review

The quaint cliché, "interference with the internal affairs of a foreign corporation," has sufficiently dominated judicial decisions to merit an exalted place in what Justice Cardozo has called "the tyranny of tags and tickets." A frequently adopted analysis for the purpose of determining whether the court will hear the cause allegedly involving internal affairs confines the inquiry of the court to the application of a test laid down by the Maryland court about a half century ago.


Banks And Banking -Trust Companies - Deposit Of Trust Funds By Corporate Trustee In Own Banking Department Feb 1933

Banks And Banking -Trust Companies - Deposit Of Trust Funds By Corporate Trustee In Own Banking Department

Michigan Law Review

The appearance of the corporate fiduciary, the trust company, in the modern banking and business world has, because of its peculiar composite structure, been attended by some confusion in the application to it of certain rules designed for the administration of trusts by private persons as trustees. The trust company maintains a department which acts as trustee, executor under wills, and in such other capacities as a natural fiduciary might assume; and in addition there usually exists, within the same corporate structure, a commercial and savings banking business. Each of these departments is capable of dealing with the other as …


Trust Receipts Feb 1933

Trust Receipts

Michigan Law Review

That the conflict between the convenience of business and the rigidity of the law continually brings about modifications and expansions of legal doctrine is nowhere better illustrated than in the field of commercial financing. A merchant wishes to purchase goods; he has no funds or available unencumbered property for security; his general credit is too poor to warrant either the manufacturer or a bank in making advances without security. How can the manufacturer give the merchant possession and power of sale of the goods and yet retain a legal hold on them or their proceeds as security for the payment …


Corporations - Conversion Of Corporate Stock Feb 1933

Corporations - Conversion Of Corporate Stock

Michigan Law Review

The defendant acquired in good faith certain stock certificates, each bearing an indorsement purporting to be that of the plaintiff. The certificates had been stolen from the plaintiff and the indorsements were forged. Upon learning that these certificates were in the possession of the defendant the plaintiff demanded their return, which was refused without qualification. The plaintiff then brought an action of trover to recover as damages the value of the stock. The Appellate Division limited the recovery to damages incurred by way of expenses, profits lost, or otherwise, flowing from the wrongful detention of the certificates as distinguished from …


Receivers - Individual Incorporating His Assets To Secure Consent Receivership Jan 1933

Receivers - Individual Incorporating His Assets To Secure Consent Receivership

Michigan Law Review

One Robinson, a lumber dealer in Philadelphia, was unable to pay his debts as they matured, but believed that he could satisfy his creditors and leave a surplus if he was not pressed. Neither in federal nor in Pennsylvania practice will a receiver be appointed for an individual. Robinson transferred his property to a Delaware corporation organized by him, receiving in return substantially all of the company's stock. The corporation agreed to assume his debts. A few days later Robinson and a simple contract creditor petitioned a federal district court for Pennsylvania for the appointment of receivers for the corporation, …


Bills And Notes - Holders In Due Course - Notice To A Corporation Jan 1933

Bills And Notes - Holders In Due Course - Notice To A Corporation

Michigan Law Review

The plaintiff, as assignee of certain negotiable bonds, brought replevin to recover the same from the defendant who had acquired them as collateral on certain loans made to the thieves. The plaintiff proved that blanket notices of the theft had been sent to a number of banks, including the defendant bank, before the bonds were accepted as collateral, thereby raising a presumption that the notice was received by the mailing clerk of the bank. The officers of the defendant trust company denied having seen the notice or having knowledge of it at the time of the acceptance. Held, since …