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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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96 Cal.App. 549, 557 [274 P. 597].) In the case last cited it was said at page 557: “ [C]onduct of directors in the management of the affairs of a corporation is not subject to attack by minority stockholders . . . where such acts are discretionary and are performed in good faith, reasonably believing them to be for the best interest of the corporation. ” Also, on said page, it was said: “Good business judgment would seem to recommend the safe and sure plan which was adopted by the directors. ... At least the transaction appears to be a discretionary matter, and if so, affords a stockholder no authority to challenge it in this equitable action. Every presumption is in favor of the good faith of the directors. Interference with such discretion is not warranted in doubtful cases.” In McCloskey v. Snowden,