Wellington Bull & Co. v. Morris

This is a stockholder’s suit to compel the defendant Morris to surrender to the corporate defendant Industrial Finance Corporation 30,000 shares of its common stock. The plaintiff claims that Morris received these shares without valid *510consideration and that a fraud was thereby perpetrated on the corporation and its stockholders. The transaction complained of occurred in 1924. The Industrial Finance Corporation, a Virginia corporation, was formed in 1914 to organize Morris Plan banks, the idea of which originated with the defendant Morris. These banks conduct the business of making small loans…