Benjamin v. Staples

Citations

• 93 Miss. 507
• 47 So. 425

Syllabus

<p>1. Banks and Banking. Receivers. Appointment. Notice. Code 1892,. § 574 (Oode 1906, § 625). Emergency.</p> <p>Tlie fraudulent mismanagement by its directors and consequent insolvency of a bank justify the appointment, at the suit of its. creditors, of a receiver to take charge of its affairs, without notice, under Code 1892, § 574 (Code 1906, § 625), providing that a receiver shall not be appointed without notice unless an immediate appointment be necessary.</p> <p>2. Same. Defect in hill. Collateral attack.</p> <p>Where at the suit of creditors a receiver was appointed to take-charge of the affairs of a bank because of its insolvency resulting-from fraudulent mismanagement by its directors, the failure of the bill for the receiver to pray process for the defendants thereto does not render the appointment void and subject to collateral. attack by one not a party to the proceeding, even if it be ground for demurrer to the bill.</p> <p>3. Same. Receivers. Chancery practice. When suit pending.</p> <p>The appointment of a receiver may be made upon the filing of a bill in equity asking the same, or at any time thereafter pending the suit, and cannot be assailed by third parties after the receiver takes possession and enters upon the discharge of his duties.</p>