Carter v. Parrish

Creditors of an insolvent corporation filed a suit for injunction and receiver. Other creditors intervened, praying judgment against the organizers of the corporation as partners, under the Civil Code (1910, § 2220, which provides as follows: “Persons who organize a company and transact business in its name, before the minimum capital stock has been subscribed for, are liable to creditors to make good the minimum capital stock' with interest.” A verdict for the plaintiffs was returned. The defendants made a motion for a new trial, on the general grounds, and subsequently amended the motion.…