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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Schneider v. Schneider, 146 S.W.2d 584 (1941)

Citation
Schneider v. Schneider, 146 S.W.2d 584 (1941)
Parent Document
Schneider v. Schneider, 146 S.W.2d 584 (1941)
Jurisdiction
Missouri (state)
Effective Date
1941-01-04

Other Sections in This Document (37)

Full Text

1,271 chars
[Filbrun v. Ivers, 92 Mo. 388, 4 S. W. 674.] Therefore, after the expulsion of respondent, Elmer Schneider and his mother held 1/3 of the partnership property in trust for the respondent. They thereafter conveyed this trust property to the corporate defendant. Where a trustee, in breach of trust, transfers trust property to another who either pays no value for the transfer or takes with notice of the breach of trust, the transferee holds the property subject to the trust. He becomes a constructive trustee himself. [Am. Law Institute, Restatement of Trusts, sec. 288.] A corporation, being an artificial person created by operation of law, can act only through its officers, directors and agents. It is bound by knowledge coming to them within the scope of their duties. In the instant case 98 of the 100 shares of capital stock of the defendant corporation were held at the time of its incorporation by Emma Schneider, and one share by Elmer Schneider. The remaining share was held by Elmer Schneider’s wife, presumably to comply with the statutory requirement of three incorporators. Emma and Elmer Schneider constituted a majority of the corporate board of directors and were the officers and managing agents of the company. In fact it was simply their alter ego.