Burdick v. Commissioner
United States Board of Tax Appeals
1. TRANSFEREES - DIVIDEND - IMPAIRMENT OF CAPITAL STOCK. Section 40, chapter 53, of Barnes West Virginia Code prohibits a corporation chartered under West Virginia laws from paying a dividend which impairs the capital stock of the corporation, and provides that every stockholder who received any such dividend shall be liable to the creditors for the amount of the capital of the corporation so received by him.
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1. TRANSFEREES - DIVIDEND - IMPAIRMENT OF CAPITAL STOCK. Section 40, chapter 53, of Barnes West Virginia Code prohibits a corporation chartered under West Virginia laws from paying a dividend which impairs the capital stock of the corporation, and provides that every stockholder who received any such dividend shall be liable to the creditors for the amount of the capital of the corporation so received by him. Held, petitioners in this proceeding are liable as transferees of property under section 280 of the Revenue Act of 1926, to the extent of the percentage of the dividend which they…
1Opinion of the Court
*1303OPINION.
Black:
The only issue for us to decide at this time is whether petitioners are liable as transferees of the assets of Consolidated, Empire and Camp, and, if so, to what extent each is liable.
At the outset it should be stated that the proof conclusively shows that the dividends which were paid to E. A. Riggall were paid to him in name only and that such dividends were the property of *1304petitioner F. F. Riggall, and petitioner E. A. Riggall had no property interest therein. We therefore hold that petitioner E. A. Rig-gall is not liable as transferee.
By reason of section 602 of the Revenue…
2Cases cited8 opinions
- Phillips v. CommissionerSupreme Court of the United States · 1931
- United States v. UpdikeSupreme Court of the United States · 1930
- Camden v. StuartSupreme Court of the United States · 1892
- Fogg v. BlairSupreme Court of the United States · 1891
- United States v. GuinzburgCourt of Appeals for the Second Circuit · 1921
3 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Shelton v. Gill, Collector of Internal RevenueCourt of Appeals for the Fourth Circuit · 1953
- North American Coal Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- Hine v. CommissionerUnited States Tax Court · 1970
- Ashton v. CommissionerUnited States Board of Tax Appeals · 1933
- Hutcherson v. CommissionerUnited States Tax Court · 1984
5 more not listed; retrieve them via the Exa API.