Bates Street Shirt Co. v. Waite

On report. Bill in equity brought to recover from former directors money alleged to have been fraudulently converted to their use or illegally expended by them.

The corporation was organized in 1907. The history of its first decade is not involved in these proceedings. In 1917, defendants became owners of all of its issued common stock with the exception of qualifying shares held by employees of plaintiff who with defendants made up the board of directors, but who had no financial interest in the business.

This condition continued during the entire period covered by the bill, excepting that in…