Star Hardware & Supply Co. v. Toledo Steel Castings Co.

Ohio Supreme Court

Star Hardware & Supply Co. v. Toledo Steel Castings Co.

90 Ohio St. (N.S.) 171

Ohio Supreme Court·Decided March 31, 1914·No. No. 13697·Published

Opinion

By the Court.

The directors of an insolvent corporation hold its property in trust for the bendit of all its creditors, and have no authority to transfer, sell and assign all of the property of the insolvent corporation to its secured creditors in satisfaction of their claims and liens, regardless of the -ights of unsecured creditors, but must proceed to wind up the affairs of such- corporation and apply all of its property and assets to the payment of its debts in the order of their priority according to law.

Judgment reversed.

Nichols, C. J., Shaucic, Tohnson, Donahue, Wanamaker and Wilicin, JJ., concur.

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By the Court.

The directors of an insolvent corporation hold its property in trust for the bendit of all its creditors, and have no authority to transfer, sell and assign all of the property of the insolvent corporation to its secured creditors in satisfaction of their claims and liens, regardless of the -ights of unsecured creditors, but must proceed to wind up the affairs of such- corporation and apply all of its property and assets to the payment of its debts in the order of their priority according to law.

Judgment reversed.

Nichols, C. J., Shaucic, Tohnson, Donahue, Wanamaker and Wilicin, JJ., concur.

Star Hardware & Supply Co. v. Toledo Steel Castings Co., 90 Ohio St. (N.S.) 171 (Ohio 1914).

Pincite

90 Ohio St. (N.S.) 171 (Star Hardware & Supply Co. v. Toledo Steel Castings Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.