Mothershead v. Douglas

Appellant, Mothershead, owns 1,950 shares of.’ slock in the Polk-Southard Mining Company, an Arkansas Corporation, in Batesville, Arkansas. Appellees constitute a majority of the board of directors and stockholders. E. P. Douglas is its president and J. Bay Nuckols, secretary-treasurer.

This corporation acquired certain mining property and equipment from J. B. Davis and assumed a substantial mortgage indebtedness held against the property by the Hendricks Mining & Milling Company, a partnership.

In the latter part of 1947, there was due on this debt to the partnership $45,000, which the…