Bogardus v. Kentucky State Bank

CLAY, Commissioner.

This suit was brought against officers of a corporation to recover a loss resulting from the distribution of part of the assets of the corporation to a stockholder who was indebted to the plaintiff bank. The trial court entered judgment for the plaintiff and one of, the defendants has appealed.

R. M. Jones was an officer, director and stockholder in the Wellner Construction Company, a corporation. In 1948 he borrowed $3,500 from the plaintiff bank and pledged as security 750 shares of stock in the corporation. This note (or renewal thereof) was outstanding and unpaid in…