ROBINSON V. WANGEMANN
75 F.2d 756 (1935)
NATURE OF THE CASE: This was an appeal of an affirmation of an order allowing a claim
against a corporate bankruptcy estate based on a note the bankrupt corporation gave in
payment for 500 shares of its own stock purchased from a large stockholder.
FACTS: Wangemann (P), president and a large stockholder in Wangemann-Reichardt Company,
Inc., sold 500 shares of company stock he owned back to the corporation at $110 per share to
be paid for on or before January 1, 1923. The purchase was authorized and the company's
note, due January 1, 1923, bearing 7 per cent interest from October 1, 1922, was delivered
to P in payment. The corporation was solvent with a surplus in cash, over and above its
liabilities. The note was not paid and renewal notes were issued with debt was reduced to
$35,000. Eventually, the corporation was adjudicated bankrupt. The referee held that the
corporation had the right to purchase its own stock, that the transaction was in good faith,
and at the time of purchase sufficient surplus was available. The referee held that P was
entitled to prove her claim and participate equally with the other creditors in the
distribution of the assets.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
Get
free access to the entire content for Mac, PC or Online
for 2-3 days and free samples
of all kinds of products.
for 2-3 days and free samples of all kinds of products.
https://bsmsphd.com
© 2007-2016 Abn Study Partner
No comments:
Post a Comment