Orlansky v. Johnson

Citations

• 113 Miss. 320
• 74 So. 113

Syllabus

<p>1. Banks and Banking. Receivership. Compositiion with officers. Effect.</p> <p>Where the receiver of a bank brought suit against the directors for mismanagement and loss of its funds, the chancery court had jurisdiction to authorize a settlement by the receiver with such directors and when such settlement was executed, the dirctors were discharged from all liabilities to the bank, its stockholders or creditors.</p> <p>2. Pleading. Construction. Presumptions..</p> <p>' Where a bill by the receiver against the directors of a bank to recover for loss of funds of the bank caused by the mismanagement of the directors, exhibited a settlement on order of the chancery court between the directors and the receiver, and did not deny the making of such settlement, the court on appeal must accept the contents of such exhibit as true.</p> <p>3. Bawks and Banking. Mismanagement of funds. Liability of directors.</p> <p>Directors of a bank are not liable for mismanagement of tbe bank prior to their incumbencies as such directors.</p>