Gloyd v. Rutherford

This action was instituted by the plaintiffs for an accounting by the defendants Rutherford and Butts, who are officers and directors of Metallo Sales & Manufacturing, Inc. Thereafter, on petition of the plaintiffs, a receiver was appointed to take charge of the property and affairs of the corporation.

When the receiver’s report was presented, it showed that the corporation had a possible claim against the defendant Rutherford, who was the president of the corporation, based upon a contract signed by him, under the terms of which he purchased 499,500 of the 500,000 authorized shares of stock.

Th…