New York Court of Appeals
Francis Greaves, Appellant v. Henry A. Gouge, Respondent
March 27, 187769 N.Y. 154
Summary
The Court of Appeals affirmed the lower courts, holding that a stockholder may sue corporate officers for fraudulent misappropriation only after the corporation refuses to bring the action, and that the corporation must be joined as a party; the stockholder cannot recover the excess depreciation of his stock’s market value without the corporation as a defendant.