Whitmer v. William Whitmer & Sons, Inc.
Court of Chancery of Delaware
Bill for the Appointment of Receiver. The bill is filed by a stockholder for the appointment of a receiver to wind up the affairs of the company, based on its insolvency, and for the appointment of a receiver pendente lite. This interlocutory application has been heard on the bill, the answer and numerous and volmninous affidavits and exhibits.
Read the full summary
Bill for the Appointment of Receiver. The bill is filed by a stockholder for the appointment of a receiver to wind up the affairs of the company, based on its insolvency, and for the appointment of a receiver pendente lite. This interlocutory application has been heard on the bill, the answer and numerous and volmninous affidavits and exhibits. The corporation, organized in 1909, has been engaged' in the lumber business, and the management of several associated companies through ownership of their shares of stock. Its authorized capital is three million dollars, of which two million dollars…
1Opinion of the Court
The Chancellor.
By statute in Delaware a receiver may be appointed for a corporation on the ground of its insolvency. Insolvency not being defined in the statute may consist of a deficiency of assets over laibilities, or inability to meet .financial obligations as they mature in the usual course of business, or both conditions may exist. It is always discretionary whether a receiver be appointed. It is not true, as claimed by the defendant’s solicitor, that an inability to meet obligations as they accrue is the only definition of insolvency. An excess of liabilities over assets may constitute…
2Cases cited3 opinions
- Ellis v. Penn Beef Co.Court of Chancery of Delaware · 1911
- Gray v. Council of Newark & the Newark Water & Electric Co.Court of Chancery of Delaware · 1911
- Taylor v. Cuban Land & Steamship Co.U.S. Circuit Court for the District of New Jersey · 1901
3Cited by10 opinions
- Bruch v. National Guarantee Credit Corp.Court of Chancery of Delaware · 1922
- Freeman v. Hare & Chase, Inc.Court of Chancery of Delaware · 1928
- Manning v. Middle States Oil Corp.Court of Chancery of Delaware · 1927
- Salnita Corp. v. Walter Holding Corp.Court of Chancery of Delaware · 1933
- Kenny v. Allerton Corp.Court of Chancery of Delaware · 1930
5 more not listed; retrieve them via the Exa API.