Bell v. Blessing

Citations

• 225 F. 750
• 141 C.C.A. 34
• 1915 U.S. App. LEXIS 2143

Syllabus

<p>1. Bankruptcy <S=>43—Corporations—Voluntary Petition in Bankruptcy —Authorization—Sufficiency. \\</p> <p>An authorization to a corporation to file its voluntary petition in bankruptcy, given by its board of directors, a member of which practically owned all the stock, is sufficient, notwithstanding Civ. Code Cal. § 361a, prohibiting any assignment 'of the business, franchise, and property of a .corporation, unless with the consent of the stockholders thereof holding at least two-thirds of the stock.</p> <p>|Éd. Note.—-For other cases, see Bankruptcy, Cent. Dig. § 38; Dec. Dig. <@=^>43.]</p> <p>2. Bankruptcy <©=>43—Voluntary Petition in Bankruptcy by Corporation—Statutes.</p> <p>A corporation, not a municipal, railroad, insurance, or banking corporation, has, under Bankr. Act July 1, 1898, c. 541, § 4a, 30 Stat. -547 (Comp. St. 1913, § 9588), the same privilege of becoming a voluntary bankrupt as an individual, and its petition therefor need only show that it owes debts which it is unable to pay in full, and that it is willing to surrender its property for the benefit of its creditors; and a resolution of the’board.of directors, authorizing the filing of a voluntary petition, need not authorize, in conformity with section 3, subd. 5 (Comp. St. 1913, § 95S7), an admission' in writing on the part of the corporation of its inability to pay its debts and its willingness to be adjudged a bankrupt on that ground, and a resolution authorizing its cashier, treasurer, and bookkeeper to prosecute in the name of the corporation a petition in bankruptcy to final discharge is sufficient to authorize the corporation to proceed as.a voluntary bankrupt to obtain its discharge.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 38; Dec. Dig. <®=>43.]</p> <p>3. Bankruptcy <©==>4—Voluntary Bankruptcy—Avoiding Attachments— Effect.</p> <p>The Bankruptcy Act recognizes the right of a bankrupt to make a voluntary assignment of his property to avoid attachments thereon, and