Roscower v. . Bizzell

The principle is well settled that “directors and managing officers of a corporation are deemed by the law to be trustees or quasi-trustees, in respect to the performance of their official duties incident to corporate management, and are therefore liable for either wilful or negligent failure to perform their official duties. Therefore, if there is a loss of the corporation’s assets, caused and brought about by the negligent failure of its officers to perform their duties, the corporation, or its receiver, in case of insolvency, can maintain an action therefor.” This principle has been…