Beyer v. Continental Trust Co.
Missouri Court of Appeals
Appeal from the Clay Circuit Court. — Hon. E. J.Broaddus, Judge. (1) A dividend to a stockholder, as against a creditor, at the time of the payment of the dividend,, where it is shown that the corporation was at that time insolvent, is merely a gift as against such creditor, and is in law fraudulent and void. Williams v. Boice, 38 N. J. Eq. 364; s. c., 6 Am. and Eng.
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Appeal from the Clay Circuit Court. — Hon. E. J.Broaddus, Judge. (1) A dividend to a stockholder, as against a creditor, at the time of the payment of the dividend,, where it is shown that the corporation was at that time insolvent, is merely a gift as against such creditor, and is in law fraudulent and void. Williams v. Boice, 38 N. J. Eq. 364; s. c., 6 Am. and Eng. Corp. Cases, 361 y Hernán v. Brittain, 88 Mo. 549. And see Bartlett v. Brew, 57 N. T. 587; Hastings v. Brew, 76 N. T. 9. (2) All persons receiving gifts from an insolvent corporation or otherwise are held to account to judgment…
1Opinion of the CourtSmith, P. J.
This is an action somewhat in the nature of a creditor’s bill. Briefly analyzed, the allegations of the petition are:
First. That the Continental Trust Company, a Missouri corporation, became insolvent on April 1, 1890, and thereafter remained so. Second. That at and since April 1, 1890, defendant L. V. Harkness owned $5,000 of its capital stock. Third. That since April 1, 1890, said Harkness has received $1,200 dividends on his capital stock. Fowrth. That between March 25, 1890, and November 5, 1892, said corporation became indebted to the plaintiff in the sum of $2,118.51, which sum was due…
2Cases cited15 opinions
- Pennoyer v. NeffSupreme Court of the United States · 1878
- Cooper v. ReynoldsSupreme Court of the United States · 1870
- Arndt v. GriggsSupreme Court of the United States · 1890
- Bartlett v. . DrewNew York Court of Appeals · 1874
- Roan v. WinnSupreme Court of Missouri · 1887
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3Cited by8 opinions
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- State Ex Rel. Kelly v. TrimbleSupreme Court of Missouri · 1923
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- German v. Universal Oil Products Co.District Court, W.D. Missouri · 1934
- Pulitzer Pub. Co. v. Current News Features, Inc.Court of Appeals for the Eighth Circuit · 1938
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