Davies v. Monroe Water Works & Light Co.

Citations

• 107 La. 145

Syllabus

<p>Syllabus.</p> <p>On Motion to Dismiss.</p> <p>1. In case of doubt, the doubt will revolve itself in favor of the appeal. The sufficiency and competency of the surety was a proper subject for inquiry in the District Court.</p> <p>2. The return of appeals in matter relating to the appointment of receivers, under Statute 1898, is governed by special provision of that statute.</p> <p>3. The_ lack of an affidavit to show interest of the appellant affords no ground to dismiss the appeal where the interest is admitted by all the parties to the appeal.</p> <p>ON the Merits.</p> <p>The management of the company brought it within the terms of the Statute 159 of 1898. A receiver was appointed by the District Court, and the court’s action in this respect is affirmed, subject to the rights of creditors under Section 10 of Statute 159 of 1898.</p> <p>On Application por Rehearing.</p> <p>1. It is good ground for the appointment of a receiver to a corporation wheri it appears that the directors or other officials are jeopardizing the rights of stockholders or creditors, by grossly mismanaging the business, or by committing acts ultra vires, or by wasting, misusing or misapplying the property or funds of the corporation; or, when it appears that a majority of the shareholders are violating the charter rights of the minority and putting their interests in imminent danger.</p> <p>2. ' It is for the court to determine whether or not the showing made justifies and makes advisable the appointment of a receiver.</p> <p>3. The appropriate place for officials in charge of the business of a corporation is the domicil of the company. If they live away from its domicil, they have no right to charge the company for traveling expenses to and fro between their homes and the domicil of the company.</p> <p>4. Officials and majority shareholders have no right to extend favors to certain of the shareholders at the expense of the corporation, or of the body of tne shareholders.</p> <p>5. The provis