BROOKSHIRE v. EXCHANGE

Messrs. James S. Verner and Bellinger, Townsend Haskell, for appellant. Mr. Verner cites: Members of sub-alliances are stockholders: 54 S.C. 440. Relation between governing body and directors is that of principal and agent: 66 L.R. 265; Pom. Eq. Jur., 1090; 21 Wall ( 22 Law ed., 492); 39 S.C. 55; 60 S.C. 200; 22 Stat., 774. Controlling body has been guilty of: 1. fraudulent acts; 2, ultra vires acts; 3, negligence; 4, the capital is in danger: 66 S.C. 100; 60 S.C. 200; 66 S.C. 491; 19 Stat., 541; Stahn v. Catawba Mills, 53 S.C. Doctrine of estoppel cannot apply here: 12 S.C. 350; 67 S.C. 446; 35 S.C. 88; 29 S.C. 55; 19 Stat., 541; 66 S.C. 503; Code of Proc., 190, 191; 29 S.C. 491. Messrs. Lyles McMahan and Hunt, Hunt Hunter, contra, cite: If investment in bank stock was ultra vires it had been remedied when this action was commenced: High on Rec., sec. 11.