Welch v. Land Development Co.

The facts alleged in the complaint, so far as pertinent on this appeal, are to the following effect. Defendant corporation was organized in 1909 with an authorized paid-in capital stock of $250,000, divided into two thousand five hundred shares having a par value of $100 each. In 1912, Art. Ill of its articles of incorporation was amended by a resolution, adopted by the unanimous vote of the common stockholders, to authorize also the issue of one thousand shares of preferred stock of the total par value of $100,000. This stock was sold largely to the common stockholders, who purchased it at…