Burham v. San Francisco Fuse Manufacturing Co.
Burham v. San Francisco Fuse Manufacturing Co.
Opinion of the Court
—The complaint avers that on the sixth day of April, 1885, the board of directors of the defendant passed an order whereby they levied an assessment, No. 10, of two dollars a share on the capital stock of said corporation, payable, etc.; that the order contained a notice that “ any stock upon which this [said]
So far as appears from the complaint, the order levying the assessment and the publication comply with the provisions of the Civil Code.
In addition, however, to the prayer for a decree enjoining the sale, the plaintiff prays “that a receiver be appointed to take charge of and wind up the affairs of the said corporation defendant.”
This last decree seems to be sought upon the averments that the defendant’s secretary, on a certain day, refused to show plaintiff “ the vouchers and bills paid or payable, so that he might learn and know the financial condition of defendant”; that the secretary, on a certain day, testified in an action between these parties that the corporation had no reputation or good-will of any value, “ but that it was a worthless concern as it stands”; and that, according to plaintiff’s information and belief, the defendant is not making gain, but is running behindhand, and will continue to do so, “ the way it is now managed,” owing to the low price of fuse, etc. The further allegation that the real object of the defendant and its directors is to get the plaintiff’s stock for the assessment is hardly a cause of complaint, if the concern is worthless. If in this state a corporation may be dissolved at the suit of a stockholder, the court below was justified in refusing such decree upon the facts alleged in the present com
The demurrer was properly sustained.
Judgment-and order affirmed.
Searls, C. J., and Paterson, J., concurred.
Reference
- Full Case Name
- CHARLES F. BURHAM v. SAN FRANCISCO FUSE MANUFACTURING COMPANY
- Cited By
- 2 cases
- Status
- Published
- Syllabus
- Corporation—Dissolution at Instance op Stockholder.—The facts that the officers of a corporation had refused to allow a stockholder to inspect its account-hooks, that it is carrying on a losing business, and that the directors had levied an assessment for the purpose of compelling the stockholder to dispose of his stock, are insufficient to entitle the stockholder to maintain an action for the dissolution of the corporation.