Grant v. Ross
Court of Appeals of Kentucky
Case 7 — PETITION EQUITY APPEAL PROM JEPBBRSON CIRCUIT COURT, CHANCERY DIVISION. 1. Where a corporation declares a dividend and it is paid to and received by the stockholders in good faith, believing that the corporation was solvent, the money so paid "can be recovered by the corporation or its assignee, if the deed of assignment passes the right.
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Case 7 — PETITION EQUITY APPEAL PROM JEPBBRSON CIRCUIT COURT, CHANCERY DIVISION. 1. Where a corporation declares a dividend and it is paid to and received by the stockholders in good faith, believing that the corporation was solvent, the money so paid "can be recovered by the corporation or its assignee, if the deed of assignment passes the right. Underwood v. Brockman, 4 Dana, 309; Bay v. Bank of Kentucky, 2 B. Mon., 513; Gratz v. Bedd, 4 B. Mon., 178; Bail-road Co. v. Bridges, 7 B. Mon., 556; Lexington Ins. Oo. v. Page, 17 B. M., 412; Slayden v. Seip, 25 Mo. App., 439-446. 2. Stockholders…
1Opinion of the Court
JUDGE HAZELRIGG
delivered the opinion of the court:
By reason of its insolvency the Southern Contract Co. in 1893 executed a deed of assignment for the benefit of its creditors, by which it conveyed to the appellant its entire property, including all claims, demands, choses in action, and right of reclamation against any and all of its stockholders and debtors.
Thereupon this suit was brought by the assignee *46against the stockholders of the company to recover assets of the corporation, which had been distributed among the defendants when it was insolvent' and largely indebted.
This distribution…
2Cited by12 opinions
- Spencer v. LoweCourt of Appeals for the Eighth Circuit · 1912
- Reid v. Owensboro Savings Bank & Trust Co.Court of Appeals of Kentucky · 1911
- Bingham v. Marion Trust Co.Indiana Court of Appeals · 1901
- Grant v. Southern Contract Co.Court of Appeals of Kentucky · 1898
- Underwood v. LennoxMassachusetts Supreme Judicial Court · 1922
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