Babb v. Rothrock

Chandler, Justice:

This litigation between four shareholders of a defunct corporation is here on direct appeal from the Master-in-Equity to . whom it was referred for final judgment.

We affirm in part and reverse in part.

I. FACTS

In January, 1982, Anchor Management, Inc. (AMI) was incorporated to manage Myrtle Beach resort property. Its shareholders were Thomas B. Rothrock, Ronny E. Hendrix, and Raymond S. Schild. Thomas Crowley was hired as general manager and elected president of the corporation, but owned no stock.

By the end of 1982, AMI needed additional working capital. On January 15,1983,…