Law v. Fuller

Citations

• 217 Pa. 439
• 66 A. 754
• 1907 Pa. LEXIS 734

Syllabus

<p>Corporations — Officers and directors — Trust relation — Loan of money to company — Purchase of corporate property.</p> <p>The president oí a corporation may, in good faith, loan to the company moneys necessary for its use, may take and enforce a note given as security for the loan, and at a judicial sale of the company’s property, purchase it for his own benefit.</p> <p>A stockholder cannot maintain a suit in his own name to assert the rights of a corporation of which he is a member unless he shows a demand upon the corporation to bring suit, and a refusal to do so, or such circumstances as would render a demand useless. The court will not assume that such demand would be'Useless, simply because the defendant owned a large majority of the stock of the corporation.</p>