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Adams v. Smith

153 So. 2d 221 (1963)

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Adams v. Smith

Alabama Supreme Court

153 So. 2d 221 (1963)

Facts

A corporation’s directors (defendants) and a majority of the corporation’s shareholders resolved to pay and did pay corporate money to the widows of two late corporate officers. A single shareholder (plaintiff) objected. The corporation was under no contractual obligation to make the payments, and the payments were made without consideration. The dissenting shareholder sued the corporation for an injunction to take steps to recover the payments and to cease further payments. The company demurred.

Rule of Law

Issue

Holding and Reasoning (Coleman, J.)

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