Wilson v. Torchon Lace & Mercantile Co.
Missouri Court of Appeals
Appeal from St. Louis City Circuit Court. — Ho». Daniel D. Fisher, Judge. (1) The capital stock of a corporation is a trust fund charged with the payment of debts, and must be treated as such. The contract alleged in the petition is unlawful, ultra vires. It is contrary to public policy for a corporation to buy and sell its own stock. Brice on Ultra Vires, p. 94; Am. & Eng. Ency. Law, p. 703; Trans.
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Appeal from St. Louis City Circuit Court. — Ho». Daniel D. Fisher, Judge. (1) The capital stock of a corporation is a trust fund charged with the payment of debts, and must be treated as such. The contract alleged in the petition is unlawful, ultra vires. It is contrary to public policy for a corporation to buy and sell its own stock. Brice on Ultra Vires, p. 94; Am. & Eng. Ency. Law, p. 703; Trans. Co. v. Kavanaugh, 93 Ala. 324; Mining Co. v. Milling Co., 62 Fed. 362; Thompson on Corp., Secs. 2054, 3701; Trevor v. Whitworth, 12 App. Cases 409 ; Bank v. Wulfskukler, 19 Kan. 60; Crandall v.…
1Opinion of the CourtReynolds, P. J.
Plaintiff in this case, respondent here, originally brought his action against the Torchon Lace & Mercantile Company, a manufacturing corporation organized and operating under the general statutes of this State as a manufacturing and business corporation, and against Sylvester G-. Lewis, president and manager of that company, to recover $1250 and interest, plaintiff claiming that in July, 1908, the defendant company, acting through its president, had solicited and induced plaintiff to purchase 100 shares of the stock of the defendant corporation for the sum of $1250, and that for the purpose…
Also in this document: Concurrence.
2Cases cited15 opinions
- Alexander v. RelfeSupreme Court of Missouri · 1881
- Cass County v. Mercantile Town Mutual InsuranceSupreme Court of Missouri · 1905
- Gill v. BalisSupreme Court of Missouri · 1880
- Ashton v. PenfieldSupreme Court of Missouri · 1911
- Chrisman-Sawyer Banking Co. ex rel. Simpson v. Independence Wool Manufacturing Co.Supreme Court of Missouri · 1902
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3Cited by16 opinions
- Champ Spring Co. v. United StatesCourt of Appeals for the Eighth Circuit · 1931
- Botz v. HelveringCourt of Appeals for the Eighth Circuit · 1943
- Townsend v. Maplewood Investment & Loan Co.Supreme Court of Missouri · 1943
- Oklahoma Natural Gas Corp. v. DouglasSupreme Court of Oklahoma · 1934
- Civil Service Inv. Ass'n v. ThomasTennessee Supreme Court · 1917
11 more not listed; retrieve them via the Exa API.