Royal Indemnity Co. v. American Bond & Mortgage Co., 289 U.S. 165 (1933)

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Royal Indemnity Co. v. American Bond & Mortgage Co.

Nos. 585 and 586

Argued March 21, 1933
Decided April 10, 1933
289 U.S. 165

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SEVENTH CIRCUIT

Syllabus

l. The principal place of business of a corporation does not cease to be such, for the purposes of jurisdiction in bankruptcy, because its assets and affairs were in the custody and control of equity receivers for the greater portion of six months preceding the filing of the petition. P. 167.

2. This is equally true whether the purpose of the receivership is to wind up, or is merely to rehabilitate, the business. P. 169.

3. A state statute forbidding the transfer, except in the usual course of business, of the franchises or assets of a corporation without the assent of stockholders does not prevent the filing of a voluntary petition in bankruptcy by authority of a resolution of the board of directors. P. 170.

4. Creditors of a corporation have no standing to attack an adjudication in bankruptcy based on a petition filed by authority of the directors, although a statute of the incorporation forbids transfer, except in the usual course of business, of the franchises or assets of the company without the assent of stockholders. P. 171.

61 F.2d 875 affirmed.

Certiorari, 288 U.S. 596, to review a decree affirming orders of the district court refusing to vacate an adjudication of bankruptcy.