Assigned Estate of Trevose Model Brick Mfg. Co.

Citations

• 159 Pa. 496
• 28 A. 1023
• 1894 Pa. LEXIS 878

Syllabus

<p>Corporations — Assigned estate — Directors—Debt in excess of capital.</p> <p>A claim that debts of directors should not be paid out of the assigned estate of a corporation, on the ground that the total debts of the company were in excess of the capital stock, cannot be sustained where the auditor reports that he was “unable to state that the directors did, during their term of office, contract a larger indebtedness than the amount of the capital stock of the company. The means for such an investigation were not presented to him, nor was any evidence offered tending to show the same, other than the amount of the claims against the assigned estate, some of which were contingent and resulted fx-om the failure of the company to carry on its operations.”</p> <p>Assigned estate — Sale—Duty of assignee.</p> <p>Where an assignee for the benefit of creditors in good faith and under advice of counsel refuses to offer for sale as a whole the real estate of the assignor after a previous ineffectual attempt to sell it as a whole, lie will not be surcharged for negligence.</p>