Marcuse v. Gullett Gin Co.

Citations

• 52 La. Ann. 1383

Syllabus

<p>Syllabus.</p> <p>1. There Is no necessity for the appointment of a special receiver to institute actions to recover from the officers and directors of a corporation, who hold a majority of its stock, property of the corporation which a stockholder charges them with having illegally diverted and appropriated to themselves, as salaries. The individual shareholder may himself bring such actions by making the corporation and the directors, against whom relief is sought, parties.</p> <p>2. Where a single shareholder charges that the directors of a corporation have, in the past, in bad faith, unjustifiably, and to the prejudice of the small holders, devoted its surplus earnings to the extension of its plant, and its business, instead of declaring dividends, and that they will continue to do so, there is no necessity for the appointment of a special receiver to obtain relief — the individual stockholder has full and adequate remedy through action in his own name.</p>