CORPORATIONS-CREDITORS' RIGHT TO AVOID CONTRACT BETWEEN HOLDING AND SUBSIDIARY CORPORATIONS

Authors

Abstract

In an ancillary proceeding, the receiver of a subsidiary corporation sought inter alia to recover from the parent corporation, which had owned for about thirteen years all of the stock of the subsidiary except shares necessary to qualify directors, fees paid under contracts during that period for management and engineering services. Held, the court will read just the consideration paid for these services and permit recovery against the parent corporation for the excess. Grand Rapids Trust Co. v. United Light and Power Co., (D. C. W. D. Mich. 1931) 7 F. Supp. 511.

Recommended Citation

CORPORATIONS-CREDITORS' RIGHT TO AVOID CONTRACT BETWEEN HOLDING AND SUBSIDIARY CORPORATIONS, 33 Mich. L. Rev. 631 (1935).
Available at: https://repository.law.umich.edu/mlr/vol33/iss4/11