Winter v. Farmers Educational & Cooperative Union of America

Murphy, Justice.

This is an appeal from a judgment entered in a secondary action by stockholders. The trial court made an award in favor of the plaintiffs for the benefit of the corporation requiring the individual defendant, its president, to reimburse the corporation for sums withdrawn. We are concerned here with whether, upon the particular facts of this case, the objection that the complaint fails to state a cause of action may be raised for the first time on appeal.

The Farmers Educational and Cooperative Union of America (Minnesota Division) was incorporated in 1929 as a nonprofit,…