Wait v. McKee
Supreme Court of Arkansas
Appeal from Pulaski Chancery Court; John B. Martineau, Chancellor; The directors of a. corporation -cannot be charged with the consequences of an honest error of judgment or accidental mistake in the exercise of their discretionary powers. 1 Morawetz on Corp., § 553; 141 U. S. 132; 34 N. J. Eq. 383; 1 R. I. 312; 51 N. Y. 27; E. R. 5 Ch. 763; 10 Ch. D. 452. The preference was illegal.
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Appeal from Pulaski Chancery Court; John B. Martineau, Chancellor; The directors of a. corporation -cannot be charged with the consequences of an honest error of judgment or accidental mistake in the exercise of their discretionary powers. 1 Morawetz on Corp., § 553; 141 U. S. 132; 34 N. J. Eq. 383; 1 R. I. 312; 51 N. Y. 27; E. R. 5 Ch. 763; 10 Ch. D. 452. The preference was illegal. Kirby’s Dig., § 951; 67 Ark. 11; 81 Ark. 591. Officers of a corporation issuing false certificates are liable therefor to a bona Me purchaser of such certificates. 36. N. Y. 200. Directors are liable for putting…
1Opinion of the CourtMcCulloch, C. J.
The Security Fire Insurance Company, a domestic fire insurance corporation domiciled at Little Rock, Arkansas, became insolvent, and a receiver was appointed by the chancery court of Pulaski County to wind up its affairs. The receiver, Charles McKee, instituted the present suit against the directors of the defunct corporation for losses which are alleged to have resulted from negligence and mismanagement in the discharge of their duties. Counsel for plaintiff summarizes as follows, in his brief, four distinct controversies or points involved' on which he , contends the directors should be…
2Cases cited2 opinions
- Fletcher v. EagleSupreme Court of Arkansas · 1905
- Bailey v. O'NealSupreme Court of Arkansas · 1909
3Cited by6 opinions
- Bank of Commerce v. GoolsbySupreme Court of Arkansas · 1917
- Robertson v. WhiteDistrict Court, W.D. Arkansas · 1986
- Muller v. Planters' Bank Trust CompanySupreme Court of Arkansas · 1925
- Engles v. ShafferSupreme Court of Arkansas · 1920
- Fox v. Republic National Life InsuranceSupreme Court of Arkansas · 1942
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