Lowry Banking Co. v. Empire Lumber Co.
Supreme Court of Georgia
Before Judge Roberts. Dodge superior court. March adjourned term, 1892. Kiser & Co. and other creditors of the Empire Lumber Co., a corporation of Tennessee but doing business in Georgia, filed their petition in the nature of a general creditors’ bill against that corporation; under which a receiver was appointed.
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Before Judge Roberts. Dodge superior court. March adjourned term, 1892. Kiser & Co. and other creditors of the Empire Lumber Co., a corporation of Tennessee but doing business in Georgia, filed their petition in the nature of a general creditors’ bill against that corporation; under which a receiver was appointed. Interventions were filed by sundry creditors, in which they attaeked'two mortgages executed in the name of the corporation to Heath and Anderson, as invalid, because made to hinder and delay creditors, because the president and secretary were not authorized by the corporation to…
1Opinion of the Court
Lumpkin, Justice.
1. A corporation can do nothing except through the-individuals who are charged with the management and control of its affairs. In the very nature of things the directors are, of all persons, those who ought to be aware of everything material to a proper discharge by the corporation of its duties and obligations. To permit ignorance in these officials of its affairs would certainly be going to the extreme limit of legal indulgence.. Surely they ought to know its condition with reference to solvency or insolvency. This duty is imperative, and therefore for all purposes they are…
2Cases cited3 opinions
- Jones v. Guaranty & Indemnity Co.Supreme Court of the United States · 1880
- Abbot v. American Hard Rubber Co.New York Supreme Court · 1861
- Pyles v. Furniture Co.West Virginia Supreme Court · 1887
3Cited by31 opinions
- Sutton Manuf'g Co. v. HutchinsonCourt of Appeals for the Seventh Circuit · 1894
- Leach v. BeazleySupreme Court of Iowa · 1926
- Ware v. RankinCourt of Appeals of Georgia · 1958
- Monroe Mercantile Co. v. Arnold & McCordSupreme Court of Georgia · 1899
- Lowe v. ByrdSupreme Court of Georgia · 1918
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