Court Opinion

ID: 7927997
Source: CourtListenerOpinion
Date Created: 2022-09-08 23:01:28.928728+00
Date Added: 2024-06-11T16:33:15.674831
License: Public Domain

Per Curiam.
The directors or other board of management of a corporation having general authority to manage its concerns, are vested by law with the only discretionary power that can exist in any one to carry on the corporate business; and such management cannot be assumed by a court of chancery, or vested in a receiver; neither can it be taken from the board, except under proceedings instituted to wind up the corporation under the statutes. — Comp. L., 1871, ch. 206 and 207.
The appointment, ex parte, of a receiver to manage the corporate business, and the granting of an injunction in like manner on an interlocutory ex parte application, whereby the control of the business is taken from the directors, are more than irregular, and are absolutely void, as entirely beyond the power of the court; and are such an abuse as may be required to be corrected by mandamus.
The nullity of such attempts to divest rights by interlocutory and ex parte orders was somewhat considered in People v. Simonson, 10 Mich., 335, and Salling v. Johnson, 25 Mich., 489. — See also Barry v. Briggs, 22 Mich., 201.
Writ granted.