A.J. Marsh Leaf Tobacco Co.

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A.J. Marsh Leaf Tobacco Co. - DEMURRER Sustained and Leaf Tobacco Warehouse...
DEMURRER Sustained and Leaf Tobacco Warehouse Company and Not Individual Stockholders May Sue. Judgs Jackson yesterday decided the demurrer demurrer to the petition In th. suit of A J Marsh against H. H. Hoffman. Lee Brooks and Henry Fsltman. This waa the case where It waa charged that the three men mentioned, while D tree tors of the C ncinnatl Leaf Tobacco Warehouse Company, and members of the Executive Committee of that board, by misrepresentations to tbe other Directors, so managed the buslnesa of the corporation that they paid eat nSO.Oi in divldenda during a serf, of years, from the capital stock of the company, when the corporation waa not In fact earning diT4- diT4- lends. It waa also alleged that they did this for the purpose of keeping up the merke price of th. stock until they gradually sold practically all their holding at a high price Hence It was asked that the defendants be compelled to repay for the benefit of the corporation the amount they wrongfully paid oat. A demurrer to the petition was based on he allegation that the plaintiff aa a atock-belder atock-belder atock-belder suing on behalf of himself and the ther stockholder., had no tight to maintain maintain the action; that tne corporation Itsef raust sue, aad Its failure to assert such a .-lelm .-lelm .-lelm against other parties, la the absence of fraud, collusion or breach of trust, does not confer such right on a .torkncIder or ,ny number of stockholders. Because of these reasons, and. further, because the defendants defendants were not shown to be in any way In control of tbe corporation aa Dtrec ora. and. tn fart, are net Directors, the Judee sustained the demurrer to the petition. In -ther -ther words, the corporation must sue instead instead of an hi dirt dual stockholder. eapeciaJ-y eapeciaJ-y eapeciaJ-y where tt Is not shewn tbat the present members of the Board of Directors are no made defendant, to the action and charged wttb fraud, collusion or Illegal conduct.

Clipped from
  1. The Cincinnati Enquirer,
  2. 15 Apr 1900, Sun,
  3. Page 8

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  • A.J. Marsh Leaf Tobacco Co.

    aprille – 09 Apr 2013

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