Berkson, Hughes & Co v. Anderson
Supreme Court of Iowa
Appeal from Woodbury District Court.- — Hon. Frank R. Gaynor, Judge. The plaintiffs are creditors of the Hnion Dry Goods Company, a corporation organized under the laws of this state, and bring this action against the defendants as stockholders in said corporation, alléging a failure to comply with thq statute in publishing the notice of incorporation.
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Appeal from Woodbury District Court.- — Hon. Frank R. Gaynor, Judge. The plaintiffs are creditors of the Hnion Dry Goods Company, a corporation organized under the laws of this state, and bring this action against the defendants as stockholders in said corporation, alléging a failure to comply with thq statute in publishing the notice of incorporation. The place of business of the Hnion Dry Goods Company was in Sioux City, and the only notice of the incorporation thereof was published in the Danbury Review, a weekly newspaper published in the town of Danbury, Woodbury county. The town has a…
1Opinion of the CourtSherwin, J.
There can no longer be any question in this state as to the individual liability of stockholders in an ordinary corporation, where there has been a failure to organize, or to give publicity of their exemption from corporate debts substantially as required by the statute. This is *676purely a statutory liability, which attaches upon the failure to do that which the statute says must be done to create the exemption of private property from corporate debts. Where the statute governing its creation has been substantially complied with, no individual liability exists. Where it shall be judicially…
2Cases cited4 opinions
- Seaton v. GrimmSupreme Court of Iowa · 1899
- Eisfeld v. KenworthSupreme Court of Iowa · 1879
- Heuer v. CarmichaelSupreme Court of Iowa · 1891
- Marshall v. HarrisSupreme Court of Iowa · 1880
3Cited by2 opinions
- Houts v. Sioux City Brass WorksSupreme Court of Iowa · 1907
- Clinton Novelty Iron Works v. NeitingSupreme Court of Iowa · 1907