Mason v. New York Silk Manufacturing Co.
New York Supreme Court
Appeal from ail order made at a Special Term, denying a motion to modify an injunction. The action was brought by the plaintiff, one of the trustees of the defendant corporation, against it and his co-trustees.
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Appeal from ail order made at a Special Term, denying a motion to modify an injunction. The action was brought by the plaintiff, one of the trustees of the defendant corporation, against it and his co-trustees. The complaint alleged that the company had become insolvent by reason of the mismanagement and the wrongful acts of the defendant trustees, and it prayed that they might be compelled to account and to pay over to the company any money or property which they might have acquired for it, or which had been lost or wasted by their wrongful and negligent acts. It also prayed for the…
1Opinion of the Court
Daniels, J.:
This action itself was prosecuted by the plaintiff, as a trustee of the New York Silk Manufacturing Company, and its object was to protect the rights and promote the property interests of the corporation. It was no part of its scope or purpose, as that was *309described in the complaint, to obtain a settlement of the affairs of the corporation and terminate its existence as such. It did not, therefore, include the right of creditors to enforce the payment of their debts against the stockholders of the corporation, because of their failure to pay up the whole amount of the capital…
2Cases cited2 opinions
- Story v. . FurmanNew York Court of Appeals · 1862
- Calkins v. AtkinsonNew York Supreme Court · 1870