In re Liquidation of Shreveport Nat. Bank

Citations

• 118 La. 664
• 43 So. 270
• 1907 La. LEXIS 784

Syllabus

<p>1. Banks and Banking — Insolvency — Accounting by Liquidators — Scope of Oppositions.</p> <p>Oppositions to the final account of their administration by the liquidators of a bank are limited to their actions as liquidators. Their acts as directors of the bank previous to the passing of the bank into liquidation, if subject to attack by the stockholders, should be advanced in some other proceeding.</p> <p>2. Same — Stock—Transfer.</p> <p>The directors of a bank are not estopped from purchasing with their own money shares of stock owned by other stockholders at as low a price as the owners were willing to dispose of them. If the price given was too low, it was a matter for the vendors of the stock to complain of. The stock purchased became then the absolute property of the purchasers, which they had the right to sell to whom they pleased. If they sold the same to another corporation of which they were directors at too-high a price, that was a matter to be complained of by the stockholders of the purchasing corporation.</p> <p>3. Same — Insolvency—Sale of Assets — Liability of Liquidator.</p> <p>The liquidators of a bank, reaching the conclusion that the interests of all parties required a sale of its assets, called a meeting of the stockholders to deliberate’ and decide upon what should be done, notifying them of the purpose of the meeting. Notice by publication was also made. The meeting was held and deliberated upon the subject. A sale of the assets of the bank at private sale on terms then fixed was agreed upon by all parties present. The assets were offered at auction separately and in bulk, and purchased by another bank, of which the liquidators were directors. The price was a fair one above two-thirds of the appraised value of the same fixed at an appraisement thereof made shortly before by three parties, one of them being the United States bank examiner, and above what the court is of opinion was greater than would have been realized at a judicial sale. Ther