RECEIVERS - CONSENT RECEIVERSHIP NOT ALLOWED IN MICHIGAN

Authors

Abstract

A general creditor filed a bill alleging that the defendant corporation's assets as shown by its books have a value in excess of its indebtedness but that it cannot meet its current obligations although its assets, when converted into money would be sufficient to meet them and continue its business; that several suits have been instituted by defendant's creditors and that if executions are issued and levies made, defendant will be compelled to cease operations and losses will be suffered by all of defendant's creditors, whereas, if a receiver is appointed to operate its business their claims may be paid in full. The bill concluded with a prayer for relief asking that a receiver be appointed. The corporation admitted the truth of the allegations and consented to the appointment of a receiver. The lower court appointed a receiver and later denied a petition of certain creditors objecting to the appointment. Upon appeal the supreme court held that a receiver should not have been appointed. National Lumberman's Bank v. Lake Shore Machinery Co., 260 Mich. 440,245 N. W. 494 (1932).

Recommended Citation

RECEIVERS - CONSENT RECEIVERSHIP NOT ALLOWED IN MICHIGAN, 31 Mich. L. Rev. 1001 (1933).
Available at: https://repository.law.umich.edu/mlr/vol31/iss7/23