Professional Documents
Culture Documents
100
65 S.Ct. 513
89 L.Ed. 776
PRICE
v.
GURNEY et al.
No. 410.
Argued Jan. 12, 1945.
Decided Feb. 5, 1945.
The District Court first approved the petition as properly filed. Later the
bondholders' committee and the corporation filed motions to dismiss the
petition on the grounds, among others, that the board of directors of the
company had not authorized it. A hearing was held, following which the
District Court dismissed the petition. The Circuit Court of Appeals reversed,
one judge dissenting. 142 F.2d 404. The case is here on a petition for a writ of
certiorari which we granted because of the importance of the problem in the
administration of the Bankruptcy Act.
Chapter X provides in 126 that 'A corporation, or three or more creditors who
have claims against a corporation or its property amounting in the aggregate to
$5,000 or over, liquidated as to amount and not contingent as to liability, or an
indenture trustee where the securities outstanding under the indenture are
10
11
Reversed.
of directors of not less than three persons, which shall manage and conduct the
business of the corporation.'
2
See Rule 23(b), Rules of Civil Procedure, 28 U.S.C.A. following section 723c.
As defined in 158.