Madden v. Penn Electric Light Co.

Citations

• 181 Pa. 617
• 37 A. 817
• 1897 Pa. LEXIS 589

Syllabus

<p>Corporations — Jurisdiction over foreign corporations — Equity—Internal ■management.</p> <p>A court of equity in Pennsylvania will not entertain a stockholder’s bill against a foreign corporation where the matters complained of in the bill relate to the internal management of the company.</p> <p>Where the act complained of in a stockholder’s bill against a corporation .affects the complainant solely in his capacity as a member of the corporation, whether it be as a stockholder, director, president or other officer, and is the act of the corporation, whether acting in stockholder’s meeting ■or through its agents, the board of directors, such action is the management of the internal affairs of the corporation; and in case of a foreign corporation the courts of Pennsylvania will not take jurisdiction; and it is immaterial that the visible, tangible property of the foreign corporation is situate within the state.</p> <p>A court of equity in Pennsylvania will not assume jurisdiction over a stockholder’s bill against a foreign corporation which charges the corporate management with disregard of the rights of the whole body of stockholders in making unwise and reckless contracts, which depreciate and render valueless the stock of the complainants.</p>