Smith v. Coolidge Banking Co.

A minority stockholder in a private corporation may proceed in equity in behalf of himself and other stockholders against the corporation, its officers, and third persons in collusion with its officers, for fraud or acts ultra vires which operatb to injure or damage the property of the corporation; but in order to do so, it must be shown that the stockholder has acted promptly, and that he has made earnest *8effort to obtain redress at the hands of the directors and stockholders, or why it could not be done, or that it was not reasonable to require it. He must also show that he was a…