Davenport v. Dows

Manifestly the proceedings for this purpose should be so conducted that any decree which shall be made on the merits shall conclude the corporation.

The relief asked is on behalf of the corporation, not the individual shareholder, and if it be granted, the complainant derives only an incidental benefit from it.

It would be wrong, in case the shareholder were unsuccessful, to allow the corporation to renew the litigation in another suit involving precisely the same subject matter.

To avoid such a result, a court of equity will not take cognizance of a bill brought to settle a question in which the corporation is the essential party in interest unless it is made a party to the litigation.

This article related to the Supreme Court of the United States is a stub.