New York National Exchange Bank v. Metropolitan Savings Bank

Citations

• 28 Wash. 553
• 68 P. 905
• 1902 Wash. LEXIS 517

Syllabus

<p>CORPORATIONS-- INSOLVENCY — DISSOLUTION-POWER OF TRUSTEES TO WIND UP AFFAIRS.</p> <p>The fact that a corporation was insolvent and had determined at a meeting of its stockholders to discontinue business and distribute its assets among its creditors would not be sufficient under Bal. Code, § 4274, to authorize its trustees at that time to act as trustees of the creditors and stockholders, to the exclusion of a receiver, since that power and authority is given to the trustees only when the corporation is dissolved under the provisions of Id., § 4275, which require the presentment of a petition therefor to the superior judge of the county, and a hearing by him after publication of notice of the petition for eight weeks, when an order of dissolution may be entered, if the judge is satisfied that all preliminary steps therefor have been taken as prescribed by the statute, and that all claims against the corporation have been discharged.</p> <p>SAME-RECEIVERS-WHEN APPOINTMENT AUTHORIZED.</p> <p>The appointment of a receiver for an insolvent corporation is authorized under Bal. Code, § 5456, which provides therefor, “when a corporation has been dissolved, or is insolvent, or is in imminent danger of insolvency, or has forfeited its corporate rights.”</p> <p>SAME-ENFORCEMENT OF CLAIMS THROUGH RECEIVER.</p> <p>A creditor who has a valid claim has a right to enforce it against an insolvent corporation through a receiver authorized by the court to collect its assets, instead of being required to sue individual stockholders.</p>