Conway

Broadly stated, the underlying and outstanding facts appertaining to the litigation upon which the appeal herein is predicated are as follows: The Citrus Belt Land Company, a corporation with an authorized capital stock of $250,000, was the owner of a tract of land approximating 5,000 acres which it proposed to improve, subdivide, and sell. In attempting to carry out such program the corporation became financially involved to the extent of about $293,000 in unpaid and overdue debts— the greater part of which being represented by bonded indebtedness and mortgages. While if given plenty of time to work out its difficulties, the corporation probably was financially sound and responsible, in the sense that it was unable to meet its obligations as they became due, the corporation was insolvent. (Sec. 3450, Civ. Code.) Its various creditors -were pressing for payment of the respective sums of money due them and were threatening foreclosure proceedings. After the corporation had exhausted all its credit, means, and sources of raising money for the discharge of its obligations, and after each of the directors of the corporation had likewise exhausted his personal ability to refinance the…