Creamery Package Manufacturing Co. v. Wilhite
Supreme Court of Arkansas
Appeal from Mississippi Chancery Court, Chicka-sawba District; Archer Wheatley, Chancellor; Bank directors cannot divest themselves of the duty of general supervision and control. 92 Ark. 327. The banking law has not changed this law. Crawford & Moses’ Digest, § 702; 141 U. S. 147. Sec. 129 Ark. 416. It is the function of the board of directors to declare dividends.
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Appeal from Mississippi Chancery Court, Chicka-sawba District; Archer Wheatley, Chancellor; Bank directors cannot divest themselves of the duty of general supervision and control. 92 Ark. 327. The banking law has not changed this law. Crawford & Moses’ Digest, § 702; 141 U. S. 147. Sec. 129 Ark. 416. It is the function of the board of directors to declare dividends. They are presumed to know whether the bant is solvent. 186 S. W. 1026. They are liable to the extent that dividends were improperly declared. 29 Atl. 207 ; 85 Atl. 448. They are liable for mismanagement of the bank or theft of its…
1Opinion of the CourtSmith, J.
The appellants, The Creamery Package Manufacturing Company, J. D. Johnson, and the Grassy Lake & Tyronza Drainage District No. 9, filed a complaint in the -chancery court of the Chickasawba District of Mississippi County, which contained the following allegations:
That the Bank of Blytheville, a banking corporation, was on the 10th day of March, 1920, indebted to appellants for money on deposit aggregating over $23,000.
“II. That defendant, J. C. Blaine, was a director and defendant, J. S. Wilhite, a director and president, and defendant, :B. H. Wilhite, cashier, and defendant W. 0. Anthony,…
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