OBRE v. ALBAN TRACTOR CO.

[No. 185, September Term, 1961.]

228 Md. 291 (1962)

179 A.2d 861

OBRE v. ALBAN TRACTOR COMPANY ET AL.

Court of Appeals of Maryland.

Decided April 11, 1962.


Attorney(s) appearing for the Case

L. Robert Evans, for appellant.

Robert F. Hochwarth, with whom were Louis J. Sagner, Francis B. Burch and Frank, Bernstein, Gutberlet & Conaway on the brief, for appellees.

The cause was argued before HENDERSON, PRESCOTT, HORNEY, MARBURY and SYBERT, JJ.


SYBERT, J., delivered the opinion of the Court.

The single question raised by this appeal is whether the Chancellor erred in his finding that a note of a corporation to its principal stockholder represented a risk capital investment in the corporation and not a bona fide debt entitling the stockholder to share as a general creditor in distribution of the corporation's assets due to insolvency.

The Annel Corporation began its existence in January, 1959, when...

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