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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Findley v. Garrett, 109 Cal. App. 2d 166 (1952)

Citation
Findley v. Garrett, 109 Cal. App. 2d 166 (1952)
Parent Document
Findley v. Garrett, 109 Cal. App. 2d 166 (1952)
Jurisdiction
California (state)
Effective Date
1952-02-08

Other Sections in This Document (69)

Full Text

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According to the amended complaint, the directors of Douglas who did not own stock in Garrett, and who always constituted a majority of the board of directors of Douglas, had knowledge that, beginning in 1936, the organizers of Garrett had committed alleged wrongful acts against the Douglas Corporation. Although there were several changes in the personnel of the board of directors of Douglas after 1936, and although the board of directors, as variously constituted after 1936 had knowledge of the alleged wrongs, the board did not seek redress. The power to manage the affairs of a corporation is vested in the board of directors. (Scott v. Los Angeles Mountain Park Co.,