People's Home Savings Bank v. Superior Court

Citations

• 103 Cal. 27
• 36 P. 1015
• 1894 Cal. LEXIS 713

Syllabus

<p>Bank Commissioners’ Act—Power of Attorney General—Injunction Suit—Winding Up of Bank—Hearing.—Under the provisions of the Bank Commissioners’ Act of March 30, 1878 (Stats, of 1877-78, p. 744), the attorney general is empowered, upon receiving a report from the bank commissioners that it is unsafe for a banking corporation to continue business, to commence an action against the corporation alone in the proper court to enjoin and prohibit it from transacting any further business, and for the sole purpose, in effect, of winding up its business, but no injunction or order can issue in said action until after a hearing, and an opportunity to the bank to contest the allegations.</p> <p>Id.—Unauthorized Action—Void Order — Ex Parte Injunction — Receiver—Prohibition.—The attorney general is not empowered to maintain an action in behalf of individual stockholders, or creditors, against the directors of the corporation, to prohibit them from transacting any further business of the corporation on the ground of their alleged negligence, incompetence, mismanagement, and fraud, and ex parte orders by the judge upon the filing of such a complaint, granting an injunction and appointing a receiver, are unauthorized and void, and a writ of prohibition will be granted to stay proceedings thereunder.</p>