Endicott v. Marvel
New Jersey Court of Chancery
The amended bill herein has been' filed by certain stockholders of the St. Leonard’s Land Company'for the benefit of that corporation. The relief sought is against five of . its seven directors. The corporation is joined as a defendant because the board has refused to authorize the suit. The controversy arises through loans of money made to the corporation by the five defendant members of its board of directors.
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The amended bill herein has been' filed by certain stockholders of the St. Leonard’s Land Company'for the benefit of that corporation. The relief sought is against five of . its seven directors. The corporation is joined as a defendant because the board has refused to authorize the suit. The controversy arises through loans of money made to the corporation by the five defendant members of its board of directors. The directors who made the loans each received from .the company to secure the loans certain collaterals, which col-laterals have since been applied in satisfaction of the loans. The…
1Opinion of the Court
LeajicnGj V. C.
It will be observed that present conditions have arisen from two several transactions authorized by the board of direcors of the corporation in which complainants are stockholders. . The. first transaction was a loan to the corporation by five of the seven members of its board. The notes of the corporation which were executed for the money so loaned were collateral notes in the usual form pledging as security the stock here in question. No objections to that transaction have been urged by complainants. The corporation was in urgent need of the money and efforts to procure the…
2Cited by16 opinions
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- Humble Oil & Refining Co. v. DoerrNew Jersey Superior Court Appellate Division · 1973
- Eshleman v. KeenanCourt of Chancery of Delaware · 1936
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