Beach v. Williamson

Citations

• 78 Fla. 611
• 83 So. 860

Syllabus

<p>1. The directors of an insolvent corporation occupy toward the creditors of the corporation a fiduciary relation in that the properties of the corporation constitute ia fund for the payment of the corporation’s debts which fund the directors are charged with managing to the best interest Of the creditors.</p> <p>2. The directors of an insolvent corporation who obtain a conveyance to themselves of all the properties of the corporation upon a promise to pay the debts of the corporation by secreting information concerning their opinion as to value of the properties that they may gain profit for themselves, and in pursuance of this design urge upon 'the other stockholders and creditors their agreement to the transfer of the properties, will be deemed'to have committed a fraud upon the creditors of the corporation, entitling them to a cancellation of the deeds conveying the properties and to the declaration of a lien thereon for the payment of their debts.</p>