147 Ga. 7 | Ga. | 1917
A minority stockholder in a private corporation may proceed in equity in behalf of himself and other stockholders against the corporation, its officers, and third persons in collusion with its officers, for fraud or acts ultra vires which operatb to injure or damage the property of the corporation; but in order to do so, it must be shown that the stockholder has acted promptly, and that he has made earnest
(a) In such a case, the corporation is a necessary party defendant to the action, but in some cases the stockholder may sue in the name of the corporation. Steele Lumber Co. v. Laurens Lumber Co., supra; 3 Cook on Corporations, §§ 644-647; Alexander v. Searcy, 81 Ga. 536 (8 S. E. 630, 12 Am. St. R. 337) ; Colquitt V. Howard, 11 Ga. 556.
(b) Applying the principles above stated, there was no error in dismissing the petition on demurrer.
Judgment affirmed.