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RICHARDSON'S EXECUTOR V. GREEN, 133 U. S. 30 (1890)

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U.S. Supreme Court

Richardson's Executor v. Green, 133 U.S. 30 (1890)

Richardson's Executor v. Green

No. 19

Argued October 17-18, 1889

Decided January 13, 1890

133 U.S. 30

APPEAL FROM THE CIRCUIT COURT OF THE UNITED

STATES FOR THE WESTERN DISTRICT OF MICHIGAN

Syllabus

While the relations of a party toward a corporation, as a director and officer or as its principal stockholder, do not preclude him from entering into contracts with it, from making loans to it, and from taking its bonds as collateral security, a court of equity will refuse to lend its aid to their enforcement unless satisfied that the transaction was entered into in good faith, with a view to the benefit of the company as well as of its creditors, and not solely with a view to his own benefit.

In the case of a corporation, as in that of a natural person, any conveyance of its property without authority of law, in fraud of its creditors, is void as to them.





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