Meter Renting Co. v. Greacen

Headnote

Corporations — directors — action by corporation to recover from directors amount of alleged improper payments authorized by them.

Meter Renting Co., Inc., v. Greacen, 214 App. Div. 722 , affirmed.

Appeal, by permission, from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered June 5, 1925, unanimously affirming a judgment in favor of plaintiff entered upon a decision of the court on trial at Special Term. The action was brought to recover from three former directors of plaintiff, a corporation, payments authorized by them for salaries and expenses in violation of an alleged agreement between the organizers of the corporation that “ so long as any such loans are unpaid no salaries shall be paid to officers or to the general manager, nor fees to directors, nor shall the company incur any expenses whatever except by consent of all the directors and the net profits of the business shall be applied first to the payment of such loans.”