Law v. Fuller
Supreme Court of Pennsylvania
Law v. Fuller, 217 Pa. 439 (Pa. 1907)
66 A. 754; 1907 Pa. LEXIS 734
Brown, Mestrezat, Pell, Potter, Stewart
Law v. Fuller
Opinion of the Court
This bill was by stockholders of a corporation against its president for an account, on the ground that he had procured a sale of the property of the company and had acquired possession thereof under circumstances that made him a trustee of the stockholders. There is no dispute as to the findings of fact. The law applicable to them is clearly stated by the learned judge of the common pleas, and on his opinion we affirm the decree at the cost of the appellant.
Reference
- Cited By
- 8 cases
- Status
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- Syllabus
- Corporations — Officers and directors — Trust relation — Loan of money to company — Purchase of corporate property. The president oí a corporation may, in good faith, loan to the company moneys necessary for its use, may take and enforce a note given as security for the loan, and at a judicial sale of the company’s property, purchase it for his own benefit. A stockholder cannot maintain a suit in his own name to assert the rights of a corporation of which he is a member unless he shows a demand upon the corporation to bring suit, and a refusal to do so, or such circumstances as would render a demand useless. The court will not assume that such demand would be'Useless, simply because the defendant owned a large majority of the stock of the corporation.