Quintal v. Greenstein

The trustees in bankruptcy of a domestic business corporation sue its directors, under section 58 of the Stock Corporation Law, to recover the amount of a dividend declared and paid from its capital and /or capital stock, in violation of that section. Plaintiffs seek to strike out defenses which, though variously worded, are all seen upon analysis to fall into one or more groups alleging (a) good faith, (b) due care, (c) action prematurely brought. The first defendants named in the caption, Greenstein and Pelz, are alleged in some of the answers to have been the only managing directors and…