Legal Opinion

Red Bud Realty Co. v. South

Supreme Court of Arkansas

Decided July 11, 1910PublishedCited by 46 opinions

Appeal fro-m Baxter Chancery Court; George T. Humphries, Chancellor; statement by the court. This was an action instituted by one of the minority stockholders of a business corporation for the purpose of making one of its directors and officers account for the alleged misappropriation of its funds, and to declare him a trustee of certain property claimed to have been purchased by him with its money.

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Appeal fro-m Baxter Chancery Court; George T. Humphries, Chancellor; statement by the court. This was an action instituted by one of the minority stockholders of a business corporation for the purpose of making one of its directors and officers account for the alleged misappropriation of its funds, and to declare him a trustee of certain property claimed to have been purchased by him with its money. The Red Bud Realty Company was organized as a corporation under the laws of the State of Arkansas on the 13th day of May, 1903, with a capital stock of $50,000, which was divided into two thousand…

1Opinion of the CourtFrauENThal, J.

(after stating the facts). 1. This was an action instituted by one of the minority shareholders of a corporation to recover in part assets not belonging directly to such shareholders, but in effect to recover assets belonging to the corporation itself.

A stockholder does not acquire any' estate in the property of a corporation by virtue of his stock; the full legal and equitable title thereto is in the corporation, .and a cause of action for the recovery of its property or for a violation of its rights thereto is in the corporation. The management and control of the affairs of a corporation…

2Cases cited25 opinions

  1. Hawes v. OaklandSupreme Court of the United States · 1882
  2. National Bank v. Insurance Co.Supreme Court of the United States · 1881
  3. Dodge v. WoolseySupreme Court of the United States · 1856
  4. Holmes v. . GilmanNew York Court of Appeals · 1893
  5. Brewer v. Proprietors of the Boston TheatreMassachusetts Supreme Judicial Court · 1870

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3Cited by46 opinions

  1. Andres v. AndresCourt of Appeals of Arkansas · 1981
  2. Backus v. FinkelsteinDistrict Court, D. Minnesota · 1927
  3. Wagner v. SariottiCalifornia Court of Appeal · 1943
  4. Marine Services Unlimited, Inc. v. RakesSupreme Court of Arkansas · 1996
  5. Pratt-Hewit Oil Corp. v. HewitTexas Supreme Court · 1932

41 more not listed; retrieve them via the Exa API.

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