Burns v. Beck & Gregg Hardware Co.
Supreme Court of Georgia
Stock and stockholders. Corporations. Equity. Debtor and creditor. Auditors. Parties. Continuance. Assignments. Fraud. Interest. Before Judge Marshall J. Clarke. Fulton superior court.
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Stock and stockholders. Corporations. Equity. Debtor and creditor. Auditors. Parties. Continuance. Assignments. Fraud. Interest. Before Judge Marshall J. Clarke. Fulton superior court. September term, 1888. On October 11, 1887, the Beck & Gregg Hardware Company brought its bill, on behalf of itself and such other creditors as might come in and bé made parties, against the Atlanta Construction Company, a corporation, and J. C. Kimball, alleging, in brief, as follows: The Construction Company is indebted to complainant $402.11 on an account past due and unpaid. It is insolvent, and on October…
1Opinion of the Court
Bleckley, Chief Justice.
1. There was no error in overruling the demurrer to the bill as amended. Burns and Parkins, both being officers of the corporation and the only stockholders therein, held out the corporation to the world as duly organized; whereas, according to the allegations of the bill, all the stock had not been subscribed for, nor had ten per cent, thereof been paid in. The corporation, therefore, was one defacto only, and had no legal right to transact business or to obtain credit. It did obtain credit, however, and this it did by reason of the wrongful acts of Burns and Parkins…
2Cases cited3 opinions
- Schley v. DixonSupreme Court of Georgia · 1858
- Martin v. FoleySupreme Court of Georgia · 1889
- Fort v. Martin Tobacco Co.Supreme Court of Georgia · 1887
3Cited by28 opinions
- Harrigan v. GilchristWisconsin Supreme Court · 1904
- Hines v. WilsonSupreme Court of Georgia · 1927
- Athens Apartment Corp. v. HillSupreme Court of Georgia · 1923
- Lowe v. ByrdSupreme Court of Georgia · 1918
- John V. Farwell Co. v. Jackson StoresSupreme Court of Georgia · 1911
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