In re Stradley & Co.
In re Stradley & Co.
Opinion of the Court
This matter is heard upon a petition to review the action of the referee in appointing a trustee. At the creditors’ meeting a majority in number of claims voted with the petitioners, and, eliminating the claim of J. W. Fore, a majority in amount so voted. Counting the claim of J. W. Fore, a majority in amount voted for the candidate who received the appointment from the referee, after the failure of the creditors to elect. The point of contestation, consequently, is the propriety of the referee’s action in permitting the claim of J. W. Fore to be voted.
The evil of permitting the action of a majority in number of creditors to be controlled by the vote of an officer or stockholder of the bankrupt corporation having a large claim can be corrected by the discretion vested in the referee in cases of collusion, improper influence, or unfit candidate.
The appointment of the trustee is confirmed, and the petition for review dismissed, at the costs of the petitioners.
For other cases see same topic & § number in Deo. & Am. Digs. 1907 to date, & Rep’r Indexes
Reference
- Full Case Name
- In re STRADLEY & CO.
- Cited By
- 6 cases
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- Published
- Syllabus
- 1. Bankruptcy (§ 123*) — Trustee—Election—Right to Vote — Director of Bankrupt Corporation. Where a creditor of a bankrupt corporation had a bona fide claim against it. and there was no evidence of collusion or improper influence, the fact that a creditor was also a director and stockholder of the bankrupt corporation did not disqualify him to vote for a trustee. [Ed. Note. — For other cases, see Bankruptcy, Dee. Dig. § 123.*] 2. Bankruptcy (§ 123*) — Claims—Verification—Amendment. An objection that the claim of a creditor was defective, in that it was verified by his attorney without any statement of a reason therefor, while good if interposed at the creditors’ meeting, before vote taken for trustee, when, in the discretion of the referee, it may be amended in time to permit the creditor to vote, was unsustainable, when not interposed until after the appointment and qualification of the trustee. [Ed. Note. — For other cases, see Bankruptcy, Dec. Dig. § 123.*]