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is such that they cannot

已有 122 次阅读2012-3-27 18:09

is such that they cannot

secure relief from the corporate authorities. In the first place, this complaint does not even disclose that these named plaintiffs and those for whose benefit the suit was brought are minority stockholders. We are not informed what amount of the stock these plaintiffs own or control, or what the authorized or issued stock of the corporation is. Therefore the plaintiffs do not Polo Outlet Shirts show their inability to secure relief within the corporation itself, and for this reason fail to state a cause of action. But, even if they are minority stockholders, they still fail to state a cause of action. It is an elementaryrule of law that, before minority stockholders can be heard to prosecute a suit founded on a right of action existing in the corporation Itself, they must allege that a demand has been made upon the board of directors or other governing body of the corporation for relief from the grievances of which they complain or for action In conformity with their desires, and that such demand has been met by a refusal, or, In lieu of such demand and refusal, they must show such a state of facts as discloses that the demand, If made, would have been entirely unavailing. The complaint falls to disclose any demand whatever upon the board of directors to prosecute this suit or prevent the threatened injury tCheap Ralph Lauren Clothes o the corporation's property. It is alleged, however, that your orators have requested the said officers and directors to redeem said property from said liens and judgment and especially from the pretended sale to Curtis Huller, but that the said officers and directors haPolo Ralph Lauren Outlet ve made no attempt to rehttp://www.ralph-laurensoutletstore.com deem said property and have refused and still refuse to do so, but this reference is only to the defendants Mcintosh and Stoney, president and secretary, respectively, of the defendant corporation, and each a director thereof. We are not informed of the number oRalph Lauren Outlet Store f directors constituting the board, and It is tPolo Outlet Online herefore impossible to say that the acts of the president and secretary are such that relief could not be had from the board Itself, and certainly neglect or misconduct on the part of those two officers Is not sufficient to relieve the plaintiffs from the necRalph Lauren Outlet essity of applying to the board of directors for a redress of their grievances or for action In conformity to their wishes. The authorities In support of these propositions are so numerous that reference to the texts where they are cited will suffice.Cyc. ;Am. & Eng. Ency. of Law d Ed.;Ency. PL & Pr. ;Cook on Stock & Stockholders d Ed.f . While it is alleged that the officers have refused to redeem the corporation's property from the pretended sale under the Huller judgment, the complaint fails to allege that the officers or directors have any funds, or the means of obtaining funds, with which to effect such redemption. The complaint contains the following paragraph: That since the yearthe operation and control of said mine has been in the hands of a board of directors, most of whom were residents of the state of Idaho, and the property has been managed and controlled since that time by said board of directors for their own personal advantage and gain, and in such a manner that the directors or some of them may finally acquire the property herein described, to the great loss and detriment of your orators, and the stockholders represented by them. Assuming, without deciding, that the words said mine refer to all the real property sold at the sheriff's sale, the paragraph quoted is distinguished by the adroitness with which the pleader approaches facts, which might reflect adversely upon the conduct of the board of directors, without stating them. It will not do to say that the directors managed the property for their own personal gain. The facts must be stated upon which such a charge can restBecause the complaint does not state any cause of action In favor of these plaintiffs, the trial court erred In directing an injunction to issue and the order is accordingly reversed.Reversed.BRANTLY, O. J and SANNER, J concur.HULSE v. NORTHERN PAC. RT.

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