Love Manufacturing Co. v. Queen City Manufacturing Co.
Mississippi Supreme Court
From the chancery court of Lauderdale county. The Queen City Manufacturing Company, an insolvent corporation, executed a general assignment, by which it preferred debts due to several of the directors who were stockholders, and it also preferred debts for which two of the directors who were stockholders were bound as indorsers. The directors who were beneficiaries of the preferences voted for and caused the assignment to be made.
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From the chancery court of Lauderdale county. The Queen City Manufacturing Company, an insolvent corporation, executed a general assignment, by which it preferred debts due to several of the directors who were stockholders, and it also preferred debts for which two of the directors who were stockholders were bound as indorsers. The directors who were beneficiaries of the preferences voted for and caused the assignment to be made. They constituted a majority of the board, and these same persons controlled and voted more than half the stock in the stockholders’ meeting which ordered the…
1Opinion of the CourtCooper, C. J.
The question involved in this case, as now presented, is not whether an insolvent corporation may, in good faith, prefer creditors, or whether the mere fact that two corporations, each having the same person as president of the board of directors,
*300and stockholders common to both, disables one to prefer the other, in good faith, as to a debt due it. These questions have been decided in this state. Arthur v. Bank, 9 Smed. & M., 394; Sells v. Rosedale Grocery Co., 72 Miss., 590. Nor is the question what preference may be given a director by a ‘ ‘ going 5 ’ corporation, not in the presence or the…
2Cases cited1 opinion
- Sells & Co. v. Rosedale Grocery & Commission Co.Mississippi Supreme Court · 1895
3Cited by12 opinions
- Wood v. Gulf States Capital CorporationMississippi Supreme Court · 1968
- Cooper v. Mississippi Land CompanyMississippi Supreme Court · 1969
- General Motors Acceptance Corp. v. BatesCourt of Appeals for the Fifth Circuit · 1992
- Liquidators of Exchange Nat. Bank of Shreveport v. United StatesCourt of Appeals for the Fifth Circuit · 1933
- Mulverhill v. Vicksburg Railway, Power & Manufacturing Co.Mississippi Supreme Court · 1906
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