Western Industries, Inc. v. Vilter Manufacturing Co.

The owners of the stock in a corporation, while engaged in lawful acts which affect the corporation, may commit the corporation to certain obligations, assuming that the rights of the creditors are properly respected. Hamilton v. Menominee Falls Quarry Co. 106 Wis. 352, 81 N. W. 876; Hoberg v. John Hoberg Co. 170 Wis. 50, *277173 N. W. 639; Jesse v. Four Wheel Drive Auto Co. 177 Wis. 627, 189 N. W. 276; Davies v. Meisenheimer, 254 Wis. 419, 37 N. W. (2d) 93. The rule as read out of the cases is expressed in 3 Thompson, Corporations (3d ed.), p. 989, sec. 230T:

“Undoubtedly a private…