Irving Trust Co. v. Maxwell

MANTON, Circuit Judge.

The appellee is the trustee in bankruptcy of Bumet-Clark, Limited, a Maryland corporation, and sued its three directors, one of whom is appellant, to recover funds paid out of capital for the purchase of stoek of the corporation. The basis of the suit rests on sections 664 and 667 of the New York Penal Law (Consol. Laws N. Y. c. 40), sections 58 and 114 of the Stock Corporation Law (Consol. Laws N. Y. c. 59), and section 60 of the General Corporation Law (Consol. Laws N. Y. c. 23). The appellee claims as successor to the rights of the corporation. The corporation was…