Respess v. Rex Spinning Co.

Two propositions constitute the basis of the defendant’s motion for nonsuit: (1) The resolution purporting to authorize the employment of auditors was not adopted or approved by the directors, but by the stockholders in a meeting at which all the stockholders were not present or represented. (2) When they made the audit the plaintiffs had not complied with the law prescribed for public accountants. In our opinion neither of them assigns sufficient cause for dismissing the action.

With respect to the first we do not think it necessary to enter into a discussion of the duties devolving…