Stebbins v. Michigan Wheelbarrow & Truck Co.

Citations

• 191 F. 238
• 1911 U.S. App. LEXIS 5526

Syllabus

<p>Corporations (§ 320*) — Stockholders’ Suit — Grounds.</p> <p>Where a corporation has continued to do business at a loss until the market value of its assets does not exceed its liabilities, and it is without’ funds to continue as a going concern, so that its stock has no substantial value, a minority stockholder cannot recover damages from the majority stockholders because of their action in transferring the property and business of the corporation to a purchaser in consideration of his assumption of its debts, even if such transfer was not authorized by law.</p> <p>[Ed. Note. — For other cases, see Corporations, Dec. Dig. § 320.*</p> <p>Rights of minority stockholders as to management of corporate affairs, see note to Wheeler v. Abilene Nat. Bank Bldg. Co., 89 C. C. A. 482.]</p>