Hawley v. Wells

The opinion of the court was delivered by

Dawson, C. J.:

This was an action by stockholders of a bank in behalf of their corporation against the defendant directors thereof to set aside and hold for naught a sale of fifteen shares of stock in the corporation which the directors had made to themselves and to recover for the corporation the profits defendants had made on the challenged transaction.

It appears that in the spring of 1938 some of the officers, directors and stockholders were contemplating a voluntary liquidation of the First National Bank, of Lewis, Kan. One of the slow assets of…