Keystone Guard v. Beaman

Citations

• 264 Pa. 397
• 107 A. 835
• 1919 Pa. LEXIS 660

Syllabus

<p>Beneficial societies — Fraudulent sale of assets — Legal fraud — Officers and directors — Conspiracy—Equity—Equity jurisdiction.</p> <p>1. On a bill in equity against the officers, and directors of an incorporated beneficial society to recover moneys received by them from the assets of the society, where it is charged that the directors fraudulently joined in a conspiracy to transfer the assets .and control of the society to irresponsible persons, with the knowledge that such persons intended to loot the society, a decree against one of the directors for the amount that was actually received by him, will be sustained, where it appears that although the court below exonerated him from the charge of conspiracy and actual fraud, it found him guilty of a legal fraud in agreeing to stand aside, for a consideration payable from the funds of the society, and permit strangers to secure possession of the society and its assets.</p> <p>2. In such a case, equity has jurisdiction, as the action is based upon the misfeasance of corporate officers in unlawfully' and fraudulently receiving corporate funds.</p> <p>Corporations — Officers—Gifts or bribes — Directors.</p> <p>3. Gifts, gratuities or bribes given to a director to influence his official action, must be accounted for by him and surrendered to the company.</p>