Metzger v. Joseph

Citations

• 111 Miss. 385
• 71 So. 645

Syllabus

<p>1. Appeal and Eeboe. Reversal. Jurisdictional defects. Banks and banking. Directors. Liability for wrongful dividends. Actions. Jurisdiction. Parties. Corporations. Statutes. Limitation of actions.</p> <p>Where the chancery court has jurisdiction of the parties and has assumed jurisdiction of the subject-matter, under section 147 of the constitution, the supreme court cannot reverse the decree of the chancellor on the question of jurisdiction.</p> <p>2. Banks and Banking. Directors. Liability for wrongful dividends. Jurisdiction.</p> <p>Equity is the proper forum of an action, instituted by a receiver of an insolvent banking establishment to recover a dividend disbursed in violation of the express provisions of section 923, Code 1906, and when the fund to be recovered should be equittably prorated' amongst that class of creditors whose debts existed at the time the dividend was declared.</p> <p>3. Dikectobs. Liability for wrongful dividends. Parties.</p> <p>The receiver of an insolvent bank may maintain a suit in equity as the representative of all the creditors to recover an illegal dividend from assenting directors under Code 1906, section 923, making them liable therefor, though the right of action is conferred by the terms of the statute on the creditors.</p> <p>4.. Same.</p> <p>In such a suit the bill sufficiently alleges the interest of the creditor if it charges that, when the dividend was declared, the bank’s stock was entirely worthless, and its assets entirely insufficient to pay creditors or any reasonable amount of their indebtedness.</p> <p>5. Coepoeations. Directors. Liability for wrongful dividends. Penal. Remedial.</p> <p>Code 1906, section 923, imposing personal liability on directors for paying dividends when the corporation is insolvent, is penal as to its construction and remedial as respects the creditors.</p> <p>6. Coepoeations. Director’s liability. Statutes.</p> <p>This section is not repealed as to banks by the state banking law (Laws 191