Allen v. New Jersey Southern Railroad

Reason suggests that an action to recover the assets of a corporation, which are claimed to have been illegally and fraudulently disposed of or converted by the *15trustees or directors, should be brought in the name of the corporation, the body which has directly sustained the injury.

The rights and property of the stockholders could be restored through such action, and authority in this regard is consonant with reason. In Gray agt. Lewis (L. R., vol. 8, page 1050), James, L. J., says: “ Where there is a corporate body capable of filing a bill" for itself to recover property either from its…