New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-02-05
THE "hyToRNET- GENERAUS BILL."

49,. - o,not oorporations was heard by the Ju-
dietary Committee Of the Legislature Oh TUESDAY s
the proposed being strongly advocated py Attorney
General Barlow:
An ACT TO regulate proceedings in certain actions against 0opo
gS p,op,, OF n, STATE Of Ner York. rId Senate and As
SECTION l. The first section Of an act entitled An act
TO regulate proceedings against corporations ny guc
ton and otherwise" passed April . 1870, ls herepy
amended so TO read as follows: 5000 enc ,ororo,
spC 4 An Injunction order TO suspend tDe Seneri
and ordinary business of corporation, or JOINT STOCK
association to suspend from office any aleC'oi, H
OF O corporation or JOINT stoch asSooa
ton, restrain prohibit any DIRECTOR Or
ma OF hs as such may be
by the Court upon notice OF at least eght days. unless
shorter time of the application therefor TO the proper
officers OF It's corporation or the DIRECTOR trustee OF man
otherwise and junction order granted for any
of the said purposes except oy tne court anu III 'n0
SEC I-Secton two OF said act is hereby amended SO
to read as follows: ,u,
removed from his Office otherwise than by the Judgment
OF the Supreme Court in civil action III the cases pre-
scrbed by the Revised Statutes but any such Oeer OF
director may be suspended from exercising ms once III
such action and in such cases by an order OF tne
Court before Judgment whenever IL shall be made 10 a
pear the Court that he has violated his trust ana an
actions and proceedings against corporation or It's M
reotOrs officers and managers, when the rellet SOUGHT
which be granted therein SHAH be the dissolution
of corporation the removal or suspension OF any
officer director manager thereof shah be brought by
the Attorney General IN the name OF the people Oh te
State and In every such action the trial shall De had III
the county which shall he designated in the complaint
unless it be made appear To the Court on proper a
pcatiOn notice that it is necessary for the purposes
of Justice that the place trial should be changed
SEC g. Whenever any director, officer or manager OF
such corporation shall be removed by the Judgeht OF
the Court upon proof conviction of gross misconduct
the Court may direct election TO be held by the
DIV vacancies created by removal but director
officer removed shall be eligible Tor re-
election reappoinmen and in case all the directors
corporation shall be removed then It shall be
the duty to report the fact to the Governor
who shall be authorized with the consent of the Senate
| to I'LL such vacancies ... $780,,
under the provisions of Article OF Title OF Chapter O.
Part of the Revised Statutes Chapter l5l OF the Laws
of 1870 this act against corporation or its trustees
directors or other Officers or any OF them the trustees
directors or other officers and all agents employees or
servants of such corporation, any Of the or other
persons having charge of the business Of such corpora
tOn any part thereof any of them, whether parties
10 the action or not may be examined on oath as wit
nesses before trial. and their dispositions be taken at
the instance of the plaintiffs for the purpose of enabling
| any interocutory order or relief, or to prepare
| for the trial: and upon the presentation 10 the
the Attorney General and verified by him, stating the
nature Of the acton and that IN ms opinion tine L.
for one OF more of the purposes above mem
Court Judge shall make order that such examna
ton be had before Judge of the Court or before
inaon Said Referee shall take the testimony of;ssid
witnesses in the county in which they m" .. are
served with 10 10 appear for examination and
when said 10 osons are taken for the purpose of OBJ
famine - interOcutory order or renef they may DC
rea. upon the hearing of any motion. -
such examination is sought and ordered for the
purpose OF preparing for trial previous notice OF at
Of the tame s Place a sSe a9d ,9s
rules az are applicable to the examination OF witnesses
ssd 1 the & e SO ike %
the of the dispositions OF witnesses taEen condl
ander 5ne s TesS in evdence ON the by
either party with the effect and subject to the same
objections the relevancy competency OF any part
thereof, in the case of dispositions taken condtlonay
as last mentioned.
SEC. 5. The Judge or the Referee before whom any
such examination shall be ordered shall be authorized 10
summer the witnesses named in the order to appear
before him for that purpose, and such summons s We
served and obedience thereto shall be enforced and the
witness shall be compelled to testify in the same mannei
as prescribed in similar cases by Article OF 11tle3 OF
Char T. Part g. Of the Revised Statues.
SIC G. II in the Of the examination hereby an
thorzed of any witness may become material TO the
plaintiffs have the production OF any books papers OF
documents possession under the control OF the
! cornoratOn against which. or against the officers O
which or some officer of which the action Is brought, o
OF any Of the directors trustees, officers thereof
the officer before whom the examination Is had shall by
order require the same to be produced before him
be examined in respect thereto ana extracts from me
may be token and Incorporated into or appended
served upon the president secretary or treasurer OF III,
corporation OF any Other person haonR te CUSTODY o.
duced, and obedience to tue same SHAH he enforced 10y
proceedings for contempt against any OF the per
cons upon whom the same may have been served and
who had the power TO comply herewith ana VINO shal
fail 10 obey the same and such failure shall be deemed
contempt Of the Court in which the action is brought
SEC In action brought mentioned in the Fourth
preceding Section of this Act the Court any Judge
thereof shall have power TO require the defendants, o
anv of them to discover and produce OF the books
Which or against the directors. trustees, OF
other officers Of which the action is brought
and which may DO IN the possession, OF
evidence relating TO the merits OF the action and upon
the presentation Of petition for that purpose by tht
Attorney General verified by him. stating the nature OF
the action, and describing the books papers or doGu
mens whereof discovery is sought and stating hat the
not in possession or under the control OF me
plaintiffs and that the discovery and inspection or the
same necessary to enable the plaintiffs to prepare the
| complaint, or obtain any interlOcutOry order OF
| relief to prepare for trial, the Court or any
native recurring the books papers documents so de
scribed be deposited with The clerk OF county which
tho trial is to be had or some other suitable PEI.
son TO he named be subject to the inspection OF the
plaintiffs and their counsel and agents. Tor reasonable
time be designated in the order and with leave TO the
plaintiffs TO make extracts thererom or that the party
against whom the discovery sought show cause, upon
a day be named which day shall be prior 10 the day
on which the deposit ordered TO be made why such
1 deposit should not be made,
| Every such order may be vacated by the Court or
Judge granting the same:
Upon satisfactory evidence that it ought not to have
| been granted.
q Upon the production and deposit sought being made.
g. Upon proof satisfactory TO the said Judge the
Court that the books papers, or documents ordered to
be produced not in the possession under the
| troll Of the defendants or Of any of them.
SEC. Such order shall have the like effect in staying
proceedings and extending time and may be enforced
| by the same penalties, and in like manner pro-
vded by law and the practice OF the Court in respect OF
orders for the discovery Of books papers, and dOcu
under the provisions of the Revised Statutes and
in addition thereto the Court Judge may in Of
any willfu refusal to comply with the Order appoint q
receiver of the books papers, documents sought for
limited time, and direct such receiver TO permit the
plaintiffs their counsel and agents 10 inspect the
and make extracts therefrOm The Court or Judge may
| on reasonable cause being shown, extend the time
during which the books, papers, or documents shall be
deposited remain in the possession OF the receiver
| SEC. 9. This Act shall take effect immediately
|