Cleburne National Bank, Cleburne v. Kenedco, Inc.

HALL, Justice.

At all pertinent times, Edward Leroy Leek and Kenneth Pugh were the only shareholders and directors (each owning 50% of the stock) of a Texas corporation known as Kenedco, Inc. Through Kenedco, Leek and Pugh operated a business known as KenLee Marine Sales, selling boats, boat trailers, boat motors, and related marine products; and another business known as Cleburne Muffler Shop, selling mufflers and other automobile accessories. Pugh managed KenLee and Leek managed the muffler shop. Cleburne National Bank financed the inventory of KenLee for Kened-co under a system commonly…