Hegarty v. American Commonwealths Power Corp.

The Chancellor :

The claimant was the secretary of the insolvent corporation. In 1928 or 1929 the corporation *232inaugurated a plan whereby it sought to stimulate the cooperation and loyalty of the employees of itself and its subsidiaries by having them become stockholders. The plan provided for the subscription to stock by employees approved by a committee. Payment of the subscription might be made either in full or under a deferred payment plan.

On July 31, 1929, the claimant subscribed for one thousand shares of the corporation’s Class B common stock at twenty dollars per share, under the…