Boyd v. . Redd
Supreme Court of North Carolina
Civil aotioN, tried before Hoke, J., and a jury, at No. vember, 1896, Term of RooKINGham Superior Court. The nature of the action and the facts appear in the opinion of the court.
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Civil aotioN, tried before Hoke, J., and a jury, at No. vember, 1896, Term of RooKINGham Superior Court. The nature of the action and the facts appear in the opinion of the court. ITis Honor, at the trial, held that the Bank of Reidsville, under and by virtue of its charter, had a lien upon the stock of A. J. Boyd — both upon the 40 shares deposited with S. H. Boyd, guardian, and upon the 37 shares now in the hands of the bank, not only for the direct debts due by A. J. Boyd to the bank, but also for the notes of A. J. Boyd to the Hermitage Cotton Mills, deposited by the said Cotton Mills as…
1Opinion of the Court
Clark, J.:
“It is clear that at common law a corporation has no lien upon the shares of its stockholders for debts due from them to the company. The policy of the common law has always been to discountenance secret liens, inasmuch as they hinder trade, and restrict the safe and speedy transfer of property.” Cook on Stocks, Sec. 620; 2 Thompson Corp., Sec. 2317; 2 Waterman Corp., 227; Heartt v. Bank, 17 N. C., 111. The Statute in such cases being in derogation of common right, must be strictly construed to the purposes of its enactment. That purpose is thus clearly stated in Bank v. Smalley, 2…
2Cases cited4 opinions
- Asheville Division No. 15 v. . AstonSupreme Court of North Carolina · 1885
- Tar River Navigation Co. v. NealSupreme Court of North Carolina · 1825
- Elizabeth City Academy v. LindseySupreme Court of North Carolina · 1846
- Heart v. State BankSupreme Court of North Carolina · 1831
3Cited by6 opinions
- First National Bank v. ScottSupreme Court of North Carolina · 1898
- Benson v. Saffert-Gugisberg Cement Construction Co.Supreme Court of Minnesota · 1924
- Bank of Hollister v. SchlichterSupreme Court of North Carolina · 1926
- Union Guardian Trust Co. v. Peoples Wayne County BankMichigan Supreme Court · 1932
- First Bank & Trust Co. v. WhippSupreme Court of Iowa · 1941
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