Irving Trust Co. v. Gunder

The plaintiff as trustee in bankruptcy of Bankers Capital Corporation, a Delaware corporation, sues certain directors of such corporation to recover from them the amount of dividends unlawfully declared and paid out of capital, and not surplus, of such corporation. Section 58 of the Stock Corporation Law provides as follows: “ § 58. Dividends. No stock corporation shall declare or pay any dividend which shall impair its capital or capital stock, nor while its capital or capital stock is impaired, nor shall any such corporation declare or pay any dividend or make any distribution of assets to…