Nedry v. Vaile
Supreme Court of Arkansas
Appeal from Sebastian Chancery Court, Fort Smith District; J. V. Bourland, Chancellor; STATEMENT BY THE COURT. This is an appeal by plaintiffs from a decree of the chancery court in defendants’ favor in an action brought by Annie Nedry and John B. Nedry against John Vaile, John W. Vaile and "Walton Vaile, to compel them to pay the claims of plaintiffs as creditors of the Fort Smith Automobile & Supply Company, a corporation, whose assets defendants are alleged to have…
Read the full summary
Appeal from Sebastian Chancery Court, Fort Smith District; J. V. Bourland, Chancellor; STATEMENT BY THE COURT. This is an appeal by plaintiffs from a decree of the chancery court in defendants’ favor in an action brought by Annie Nedry and John B. Nedry against John Vaile, John W. Vaile and "Walton Vaile, to compel them to pay the claims of plaintiffs as creditors of the Fort Smith Automobile & Supply Company, a corporation, whose assets defendants are alleged to have absorbed. The complaint seeks to set aside certain conveyances made by the corporation to the defendants as a fraud upon the…
1Opinion of the Court
Hart, J.,
(after stating the facts). It may be said at the outset that a director of a corporation stands in the relation of a trustee to the stockholders and creditors of the corporation. Some of the authorities hold that a purchase by a director of all the assets of the corporation is absolutely void, without regard to the good faith of the transaction, and that the property belongs to the corporation the same as it did before such sale. Our court has held, however, that such sale is only to be voided at the instance of some party in interest for fraud. Jones, McDowell & Co. v. The Arkansas…
2Cases cited4 opinions
- Jones, McDowell & Co. v. Ark. Mech. & Agl. Co.Supreme Court of Arkansas · 1881
- Papan v. NahaySupreme Court of Arkansas · 1913
- Wesco Supply Co. v. El Dorado Light & Water Co.Supreme Court of Arkansas · 1913
- Dozier v. Arkadelphia Cotton MillsSupreme Court of Arkansas · 1899
3Cited by12 opinions
- Walker-Lucas-Hudson Oil Company v. HudsonSupreme Court of Arkansas · 1925
- Clark-Mcwilliams Coal Co. v. WardSupreme Court of Arkansas · 1932
- Chamber of Commerce of Hot Springs v. BartonSupreme Court of Arkansas · 1937
- A & P's Hole-In-One, Inc. v. MoskopCourt of Appeals of Arkansas · 1992
- Wilson v. LucasSupreme Court of Arkansas · 1932
7 more not listed; retrieve them via the Exa API.