Kraft-Holmes Grocery Co. v. Crow
Missouri Court of Appeals
Error to the Franklin Circuit Court. — Hon. Rudolph Hirzel, Judge. The directors of a corporation which has become hopelessly insolvent, remaining in possession of corporate assets, are quasi trustees thereof for the equal' benefit of all the creditors. Mor. onCorp., sec. 581, 240; Sawyer v. Hoag, 17 Wall.
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Error to the Franklin Circuit Court. — Hon. Rudolph Hirzel, Judge. The directors of a corporation which has become hopelessly insolvent, remaining in possession of corporate assets, are quasi trustees thereof for the equal' benefit of all the creditors. Mor. onCorp., sec. 581, 240; Sawyer v. Hoag, 17 Wall. (U. S.) 610; Thompson, Liability, etc., sec. 23, p. 397. Directors of a corporation can not lawfully appropriate the corporate assets in payment of their own debts, to the exclusion of other creditors of the corporation. Marr v. Bank, 4 Cold. (Tenn.) 484; Foster v. Mullanphy Co., 16 Mo.…
1Opinion of the CourtRombauer, P. J.
The petition in this case purports to be a creditor’s bill filed by the Kraft-Holmes Grocery Company, and Dodd, Brown & Co., on behalf of themselves and all other creditors of the Bennett and Wishon Mercantile Company, a corporation, against the defendants Crow, Bennett, and Calvird, directors, for an account of assets of the corporation, which they are charged to have illegally appropriated to their own use.
The petition is very voluminous, but for the purposes of this review, it suffices to state that it makes in substance the following charges :
The defendants Crow and Bennett, and one…
2Cases cited3 opinions
- Foster v. Mullanphy Planing Mill Co.Supreme Court of Missouri · 1887
- Liebke v. KnappSupreme Court of Missouri · 1883
- State ex rel. Attorney-General v. WoodMissouri Court of Appeals · 1883