Kendall v. Klapperthal Co.

Citations

• 202 Pa. 596
• 52 A. 92
• 1902 Pa. LEXIS 571

Syllabus

<p>Corporations — Directors—Reimbursement of directors for moneys advanced to corporation.</p> <p>If directors of a corporation supply the latter with money to meet its legitimate needs, and the money so furnished is properly used in carrying on the corporate business, they are entitled to recover from the company the value of the money so supplied and used, and not upon the basis of any actual contract, but of a duty which the law imposes, for reasons of justice to make fair compensation for what has been properly received and applied. This rule applies where the same persons associate themselves together under different corporate names and organizations for the purpose of carrying out several branches of a single common enterprise and advances are made by directors to one corporation, and are reimbursed to them by another of the corporations; and this is especially so where the reimbursement is actually authorized at a stockholders’ meeting of the company reimbursing.</p>