Leathers v. Janney
Supreme Court of Louisiana
APPEAL from the Civil District Court, for tho Parish of Orleans. Jlujliior, J. Shares of the capital stock of a corporation pledged to seoprc a bona fide debt, fix a corporate liability in favor of the pledgee, and an unlawful transfer thereof is a breach of corporate duty, for which the corporation is liable. Corporations hold all their property, effects and assets in trust for their creditors and shareholders.
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APPEAL from the Civil District Court, for tho Parish of Orleans. Jlujliior, J. Shares of the capital stock of a corporation pledged to seoprc a bona fide debt, fix a corporate liability in favor of the pledgee, and an unlawful transfer thereof is a breach of corporate duty, for which the corporation is liable. Corporations hold all their property, effects and assets in trust for their creditors and shareholders. All such assets, property and effects are to be devoted first, in payment, of corporate debts and liabilities; and if, after satisfying debts and liabilities, there he a residue, it…
1Opinion of the Court
The opinion of the Court was delivered by
Fenner, J.
Prior to June, 1885, there existed three distinct corporporations, viz: the New Orleans, Baton Rouge and Bayou Sara Packet Company, the Merchants’ and Planters’ Packet Company, and the Coast and Mississippi River Packet Company, each of which owned and operated a steamboat.
Desiring to put an ond to disastrous competition, the stockholders in these three corporations, agreed to form anew corporation which should acquire the ownership of all three boats at valuations fixed in advance and run them in a common interest.
Accordingly on June 22,…
2Cases cited3 opinions
- Mumma v. Potomac Co.Supreme Court of the United States · 1834
- Bank of St. Marys v. St. John, Powers & Co.Supreme Court of Alabama · 1854
- Smith v. HuckabeeSupreme Court of Alabama · 1875
3Cited by2 opinions
- Phillips v. Providence Steam Engine Co.Supreme Court of Rhode Island · 1899
- Slattery v. Greater New Orleans Realty & Development Co.Supreme Court of Louisiana · 1911