Kennedy Drug Co. v. Keyes

Citations

• 60 Wash. 337
• 111 P. 175
• 1910 Wash. LEXIS 1047

Syllabus

<p>Corporations — Receivers—Grounds—Fraud of Promoter — Stockholders. A receiver is properly appointed for a corporation where it appears that a promoter, through fraudulent representations, obtained a drug business and property of the other stockholders of the value of $33,000, and conveyed the same to the corporation in full payment of stock of the par value of $100,000, two-thirds of which he issued to himself without paying anything therefor, and in violation of his agreement to sell the same for the benefit of the corporation, by means of which he absolutely controls the corporation, and secured heavy profits to himself for which he refuses to account, and that he is about to bond the company, and threatens the corporation with insolvency by ill management.</p>