Red Bud Realty Co. v. South
Supreme Court of Arkansas
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
- Hawes v. OaklandSupreme Court of the United States · 1882
- National Bank v. Insurance Co.Supreme Court of the United States · 1881
- Dodge v. WoolseySupreme Court of the United States · 1856
- Holmes v. . GilmanNew York Court of Appeals · 1893
- Brewer v. Proprietors of the Boston TheatreMassachusetts Supreme Judicial Court · 1870
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3Cited by46 opinions
- Andres v. AndresCourt of Appeals of Arkansas · 1981
- Backus v. FinkelsteinDistrict Court, D. Minnesota · 1927
- Wagner v. SariottiCalifornia Court of Appeal · 1943
- Marine Services Unlimited, Inc. v. RakesSupreme Court of Arkansas · 1996
- Pratt-Hewit Oil Corp. v. HewitTexas Supreme Court · 1932
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