Deming v. Beatty Oil Co.

Citations

• 72 Kan. 614
• 84 P. 385
• 1906 Kan. LEXIS 365

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Parties — Corporations—Misappropriation of Funds — Suit by Stockholder. The general rule is that where one or more stockholders bring suit against the directors of the corporation to recover, for the benefit of all the stockholders of the corporation, certain funds alleged to have been fraudulently misappropriated by the directors, the corporation is a necessary party defendant in the suit and must be brought into court by proper service of a summons or otherwise.</p> <p>2.--Allegation Insufficient to Constitute an Exception. If there be exceptions to the above rule, the mere allegation that the corporation was organized under the laws of another state and that service cannot be had upon it in the state where the suit is brought, and that the corporation refuses to appear in the suit, is not sufficient to constitute such an exception, even in an equitable proceeding.</p> <p>3. -Appointment of a Trustee. Nor does a prayer in the petition “that this court shall appoint one of its officers, or some other appropriate person, as trustee for said company to receive and hold whatever money may be found to be due said company,” obviate the necessity of bringing the corporation into court.</p>