In re Eckhardt Mfg. Co.

Citations

• 114 La. 119
• 38 So. 78
• 1905 La. LEXIS 428

Syllabus

<p>CORPORATIONS — APPOINTMENT OE RECEIVER— RIGHTS ' OE STOCKHOLDERS — ESTOPPEL —OBJECTIONS TO RECEIVER.</p> <p>1.Where a creditor of a corporation which has been placed by the district court in the hands of a receiver, in order to wind up its affairs under its orders, seeks to avoid the order by motion to have the same set aside, the issues submitted on the trial of that motion in the lower court, and on appeal from the court’s judgment on such motion, are much broader than they would have been had the creditor appealed from the order on the face of the record. Where, on such trial, under the evidence adduced, and the attitude taken by the majority of the stockholders, a condition of affairs is shown which justifies the court’s action, it will be maintained.</p> <p>2. Stockholders in a corporation, who, at a stockholders’ meeting, voted for placing the same in liquidation in the hands of liquidators, and voted for the liquidators who were elected at that meeting, are not estopped by that action from subsequently intervening, in a proceeding taken to vacate an order of court replacing the liquidators by a receiver, to oppose the vacating of the order, particularly where the liquidators have themselves intervened in support of the order.</p> <p>3. The discretion of an inferior court in the selection of a receiver as its agent in the liquidation of a corporation should remain undisturbed, unless objections of the most serious character are shown, or some fatal objection on principle in the person named. Because the person named is a creditor and stockholder in the corporation is not necessarily an objection. If true it be that the former liquidators have permitted stockholders who are creditors to compensate debts which they owe to the corporation for purchase of merchandise by debts due to themselves and, among_ these, the party who-had been appointed receiver, that fact would not, as a matter of course, prove wrongdoing by the liquidators, still less by the parties s