Gullege v. Woods

Citations

• 108 Miss. 233
• 66 So. 536

Syllabus

<p>1. Corporations. Charter powers. Indorsement of note. Bankruptcy. Fraudulent transfers. Bill for recovery. Sufficiency.</p> <p>A corporation, was engaged in a mercantile business with full authority under its charter to conduct such business and to borrow and lend money and receive and execute securities therefor. As a necessary incident to the carrying on of its business, the company could execute gnd become a party to negotiable paper. This includes the indorsement of a note.</p> <p>2. Bankruptcy. Fraudulent transfers. Bill for recovery. Sufficiency.</p> <p>A bill by the trustee of a bankrupt corporation which seeks to recover the amount paid by the corporation to the holder of a promissory note, which the corporation had indorsed for accommodation and paid, alleging that the payment was a fraud upon creditors on the ground that it was ultra vires, and an illegal diversion of its funds, but does not allege that the holder of the^ note knew at tke time lie received tke money in payment of the note, that the company was insolvent, or knew of any act on the part of the company which was a fraud on the rights of the creditors, is insufficient.</p>