Whitlock v. Alexander
Supreme Court of North Carolina
Appeal by defendant from Daniels, J., at July Term, 1912, of MECKLENBURG. Civil action brought by the receivers of the Carolina Ice Company, insolvent, to recover of defendant, as holder and owner of 62% shares of stock, $100 each, in said corporation, 31% shares being on original subscription, issued July, 1908, and 31% by reason of a stock dividend, issued 11 February, 1909, the claim being that nothing of value had been paid on either issue.
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Appeal by defendant from Daniels, J., at July Term, 1912, of MECKLENBURG. Civil action brought by the receivers of the Carolina Ice Company, insolvent, to recover of defendant, as holder and owner of 62% shares of stock, $100 each, in said corporation, 31% shares being on original subscription, issued July, 1908, and 31% by reason of a stock dividend, issued 11 February, 1909, the claim being that nothing of value had been paid on either issue. The defendant having denied liability, issues were submitted and responded to by jury as follows: 1. Are the 31% shares of stock of the Carolina Ice…
1Opinion of the Court
Hoke, J.,
after stating the case: The decisions of this State are to the effect, and the position is in accord with doctrine prevailing in other jurisdictions, that the capital stock of a corporation, including unpaid indebtedness for stock issued and held by the stockholders, shall, if required, be considered a trust fund for the creditors; that, under ordinary conditions, persons having business dealings with the companies have a right to suppose that this capital stock has been paid in, in money or in money’s worth, and in case, of insolvency any unpaid balance may, by proper proceedings,…
2Cases cited20 opinions
- Sawyer v. HoagSupreme Court of the United States · 1873
- Handley v. StutzSupreme Court of the United States · 1891
- Fogg v. BlairSupreme Court of the United States · 1891
- Coit v. Gold Amalgamating Co.Supreme Court of the United States · 1886
- McIver v. Young Hardware Co.Supreme Court of North Carolina · 1907
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3Cited by13 opinions
- Besseliew v. . BrownSupreme Court of North Carolina · 1919
- State Ex Rel. North Carolina Corp. Commission v. Harnett County Trust Co.Supreme Court of North Carolina · 1926
- Fuller v. Motor & Tire Service Co.Supreme Court of North Carolina · 1925
- Pittsburg Steel Co. v. Davidson Hardware Co.Supreme Court of North Carolina · 1918
- Roscower v. . BizzellSupreme Court of North Carolina · 1930
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