Crawford v. Twin City Oil Co.

It is a well-established principle that any issue of stock by a corporation in excess of the amount prescribed or limited by its charter is ultra vires, and the stock so issued is void, even in the hands of a bona fide purchaser for value. 7 R. C. L. p. 218. “The attempt to increase the stock of the company. beyond tbe limit fixe'd by its charter was ultra vires. The stock itself was, therefore, void. It conferred on the holders no rights, and subjected them to no liabilities.” Granger’s Life & Health Ins. Co. v. Kamper, 73 Ala. 343.

It would therefore seem that the 27 shares issued to Mrs.…