Pepper v. Addicks

Citations

• 153 F. 383
• 1907 U.S. App. LEXIS 5098

Syllabus

<p>1. Corporations — Officers—Misappropriation of Funds.</p> <p>Where defendant, an officer and director of a corporation, absolutely dominated its board of directors and induced such board to authorize the purchase of worthless bonds of other corporations in which he was interested, by which he was enabled to make a large individual profit, lie was liable to account to the corporation’s receiver for the profit so made.</p> <p>[Ed. Note. — For cases in point, see Cent. Dig. vol. 12, Corporations, §§ 1393-1415. J</p> <p>2. Equity — Accounting—Appointment of Master — Discretion.</p> <p>In a suit by the receiver of a corporation for an accounting of profiis wrongfully made by defendant, an officer and director, by the wrongful use of the corporation’s funds, the court, after determining defendant’s liability, was not bound to appoint a master to take an account, but could do so or not, in its discretion.</p> <p>[Ed. Note. — For cases in point, see Cent. Dig. vol. 19, Equity, § 866.]</p>