308 U.S. 295 (1939)
Respondent was the controlling stockholder of the company. Respondent made an alleged salary claim against the bankruptcy estate. The district court disallowed the claim, and the appeals court reversed.
- Affirming the district court, the court held that the claim should be disallowed.
- Being a controlling stockholder, respondent's claim was to be subject to strict scrutiny.
- The court explained that respondent had allowed the salary claims to lie dormant for years and sought to enforce them only when his debtor corporation was in financial difficulty.
- Thus, the court concluded that the district court was correct in disallowing respondent's planned and fraudulent scheme to exclude his creditors.
The court reversed the appeals court judgment and affirmed the district court, finding that the appeals court had erred.
Recommended Supplements for Corporations and Business Associations Law