Kempner v. Stephens

On September 17,1928, J. A. Chambers, of Memphis, Tennessee, and associates, organized the Specification Motor Oil System, Incorporated. The capital stock was 25,000 shares of no par value. No money was paid in at the time of the incorporation, but Mr. Chambers testified that he was the owner of all the patents covering certain fixtures pertaining to the system, and that he exchanged his patent rights and property-rights, and became the sole owner of all the stock. He transferred 3,000 shares to Ike Kempner, and took Kemp-ner’s notes for $22,500. Chambers was president of the company, and…