Excelsior Petroleum Co. v. . Lacey
New York Court of Appeals
Appeal from judgment of the General Term of the Supreme Court in the first judicial department, affirming a judgment in favor of defendants entered upon the report of a referee. This action was brought against the original defendants as former trustees of plaintiff, a corporation organized under the general law of this State.
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Appeal from judgment of the General Term of the Supreme Court in the first judicial department, affirming a judgment in favor of defendants entered upon the report of a referee. This action was brought against the original defendants as former trustees of plaintiff, a corporation organized under the general law of this State. (Chap. 40, Laws of 1848.) The complaint alleged that defendants, for the fraudulent purpose of causing it to be believed that the stock of the corporation was of great value and desirable as an investment, made various dividends, which were paid out of the capital of the…
1Opinion of the CourtFolger, J.
What is the act complained of in this suit? It is the declaring and paying a dividend which did diminish the amount of the capital stock. That is just the act which-the legislature forbids in the thirteenth section of the law of 1848. (Laws of 1848, p. 57, chap. 40, § 13.) It is just the act which, among others, is forbidden by the Bevised Stautes. (1 R. S., 601, § 2.) Each law imposes a penalty, and prescribes by whom it shall be enforced, for the doing of that act. As to the penalty the laws differ. The amount of the penalty is different, and it is enforceable by different persons-; and…
2Cases cited2 opinions
- Robinson v. SmithNew York Court of Chancery · 1831
- Franklin Fire Insurance v. JenkinsNew York Supreme Court · 1829
3Cited by17 opinions
- People Ex Rel. Edison General Electric Co. v. BarkerNew York Court of Appeals · 1894
- Van Dyck v. . McQuadeNew York Court of Appeals · 1881
- People Ex Rel. Burroughs v. . BrinkerhoffNew York Court of Appeals · 1877
- Quintal v. GreensteinNew York Supreme Court · 1932
- Van Cott v. Van BruntNew York Supreme Court · 1877
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