Opinion
Opinion filed May 26, 1944. Rehearing denied August 28, 1944.
CORPORATIONS, § 329 — when knowledge of corporation's president bars corporation's right to share of proceeds of sale. In action for accounting, where evidence showed that after purchase of oil lease by defendant company, a one-half interest in the company was sold for $8,000 and used for the development of such lease, at which time a trust agreement was executed by the various stockholders whereby the trustee was to operate, manage and develop said lease, held that the sale by plaintiff corporation of its 1/8 interest in defendant company to trustee for cash barred any recovery by plaintiff of a share in said $8,000, since plaintiff's president, who was also president of the defendant corporation, knew all the facts concerning the transaction, and his knowledge was the knowledge of plaintiff.
See Callaghan's Illinois Digest, same topic and section number.
Appeal from the Circuit Court of Marion county; the Hon. FRANKLIN R. DOVE, Judge, presiding.
Judgment affirmed. Heard in this court at the May term, 1944; opinion filed May 26, 1944.
Lord, Bissell Kadyk, for appellant;
Spaulding F. Glass and John F. Shallenberger, of counsel;
Howard Martin, William A. Miller and Alfred S. Pfaff, for appellees.
Not to be published in full. Rehearing denied August 28, 1944.