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Business Associations Keyed to Bainbridge
Francis v. United Jersey Bank
Citation:432 A.2d 814 (1981)
Pritchard & Baird Intermediaries Corp. was in the business of acting as a reinsurance broker. Lillian Pritchard had inherited a 48 percent interest in Pritchard & Baird from her husband. She was the largest single shareholder and a director. The remaining shares were owned by her sons, Charles and William, who also served as directors. Charles and William over the period of several years withdrew large sums of money from the corporation in the form of loans. The purported loans turned out to be misappropriations by the two sons. The trustee brought the suit against Mrs. Pritchard’s estate to recover the misappropriated amounts. Mrs. Pritchard was not active in the business of Pritchard & Baird and knew virtually nothing of its corporate affairs. After her husband died, she became incapacitated and died in 1978,
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