McDonald v. Redding Lumber Co.

1. “Directors primarily represent the corporation and its stockholders, but when the corporation becomes insolvent they are bound to manage the remaining assets for the benefit of its creditors, and can not in any manner use their powers for the purpose of obtaining a preference or advantage to themselves.” Civil Code (1910), § 2222.

2. Where a corporation was insolvent, it could not as against other creditors make a valid conveyance of its property to one of its. officers and di*657rectors for the purpose of paying an existing debt of the corporation for which he was personally liable, the…