duPont v. Standard Arms Co.
Court of Chancery of Delaware
Petition by Stockholders for Leave to Bring a Class Bill Against Receiver and Certain Directors. Hervey S. Knight, R. Stanley Carswell and W’lliam D. Condit, the petitioners, were stockholders of the Standard Arms Company, and alleged that certain persons, directors of the company at or about the time of the appointment of the receiver, had so negligently and willfully mismanaged the business and affairs of the company as to cause its insolvency; and that b}r reason thereof…
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Petition by Stockholders for Leave to Bring a Class Bill Against Receiver and Certain Directors. Hervey S. Knight, R. Stanley Carswell and W’lliam D. Condit, the petitioners, were stockholders of the Standard Arms Company, and alleged that certain persons, directors of the company at or about the time of the appointment of the receiver, had so negligently and willfully mismanaged the business and affairs of the company as to cause its insolvency; and that b}r reason thereof ad of the stockholders had lost their entire investment and the benefit and profits from certain patents held by the…
1Opinion of the Court
The Chancellor:
A receiver of the Standard Aims Company was appointed by this Court on the ground of its insolvency, and the receiver has sold all its property and assets, and is about ready to make distribution of the proceeds thereof *328among its creditors as preliminary to a winding up of the administration of its estate. Several stockholders have filed a petition to be allowed to sue some of the officers of the insolvent company for mismanagement of its affairs by a class bill, with the corporation and the receiver as formal defendants. The basis of this application is the alleged refusal of…
2Cases cited1 opinion
- Porter v. SabinSupreme Court of the United States · 1893
3Cited by6 opinions
- Browne v. HammettSupreme Court of South Carolina · 1926
- Bovay v. H. M. Byllesby & Co.Court of Chancery of Delaware · 1940
- McKee v. RogersCourt of Chancery of Delaware · 1931
- Gary v. MatthewsSupreme Court of South Carolina · 1928
- Scholl v. Allen, JudgeCourt of Appeals of Kentucky (pre-1976) · 1931
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