Moller v. Keystone Fibre Co.

Citations

• 187 Pa. 553
• 41 A. 478
• 1898 Pa. LEXIS 842

Syllabus

<p>Corporations — Directors’ meetings — Illegality of meeting — Ratification. A resolution authorizing the assignment of certain insurance policies 2)assed at a meeting of the directors of a corporation, of which meeting two of the directors did not have timely notice, is voidable, but if no officer or stockholder of the company makes any objection to it, their acquiescence must be accepted as a ratification of the resolution ; and no creditor of the company can question its validity.</p> <p>Corporations — Preferences.</p> <p>A corporation, as well as an individual or copartnership, may prefer one creditor to another if the preference is honestly made to secure or satisfy a bona fide debt.</p> <p>Corporations— Preferences — Directors.</p> <p>A director who is also a creditor of an insolvent corporation may not by his own vote obtain a preference for his claim over the claims of other ci'editors.</p> <p>The fact that one of the parties benefited by a preferential assignment made by an insolvent corporation is a director of the corporation is not fatal to the preferences lawfully created and conferred by it.</p>