Eagle Iron Co. v. Colyar

The first-entitled case is an appeal in a suit in equity brought in the name of the Eagle Iron Company against its former president, charging mismanagement and conversion of the company property, and praying for restitution and an accounting. On a hearing, the Circuit Court dismissed the bill because it was not brought with sufficient authorization of the company, in that the persons claim.ing to be president and directors of the company and directing the suit were not legally chosen by the stockholders' nor legally authorized to control the corporation. The court, however, allowed said…