Mencher v. Richards

This is a stockholder’s action against directors of a corporation. In one cause of action the defendant directors are charged with negligence and violation of statutes. Specifically, they are charged with lending the money of the corporation secured only by junior mortgages and by an unsecured note, and in causing the corporation to guarantee payment of mortgages made on vacant property, involving a number of transactions set forth in the complaint. In addition, three of the defendants are charged with having personally profited by transactions in which it is claimed that illegal loans were…