187 A. 146 | N.J. | 1936
The appeal is from an order entered in the court of chancery, which opinion is reported at
The court heard the matter on the return of the rule to show cause and being satisfied as to the sufficiency of the proofs entered the order appealed from.
The appellants, three in number, are certificate holders in a series aggregating approximately $817,625. Their interest is proportionately very small. The company has two issues of bonds designated as Series G and I, aggregating approximately $96,000, and it has also outstanding guarantees of the payment of principal and interest upon mortgages in the sum of $1,286,720.
Section 56 of the Insurance act, as amended by the laws of 1931, chapter
The court of chancery in Smith v. Washington CasualtyInsurance Co.,
When destructive litigation may be threatened against such companies and there is a necessity for a single administration to conserve the rights of those interested it is apparent that there is legislative authority to provide for an equitable administration. The legislature long also provided in the Corporation act for the administration of the affairs of insolvent general business corporations. In recently providing further by amendment for an equitable administration for the affairs of title guaranty companies unable to safely conduct their business, it did no more than was apparently necessary for the safety of those interested. The act of the court of chancery in appointing trustees, pursuant to the statute, was in all respects proper — the legislature always having had the power to enact laws providing for the equitable winding up of the affairs of insolvent corporations.
It is not necessary to determine whether any of the powers of the court of chancery were impaired by the legislation in question, because that court has acted of its own volition along the lines suggested by the statute. It clearly has such power.
The order appealed from is affirmed.
For affirmance — THE CHIEF-JUSTICE, LLOYD, CASE, BODINE, HEHER, PERSKIE, HETFIELD, DEAR, WELLS, WOLFSKEIL, RAFFERTY, JJ. 11.
*611For reversal — None.