Berryman v. Bankers' Life Insurance
Appellate Division of the Supreme Court of the State of New York
Submission of a controversy upon ah agreed statement of facts pursuant to section 1279 of tlié Code of Civil Procedure/ The Bankers’ Life Insurance Company of the City of New York is a corporation originally organized as a fraternal, organization on March 24, 1869,-under the name of the “Bank Clerks’ Mutual Benefit Association of the City of 'New York.” ■ On the 15th day of August, 1884, it was formally incorporated under chapter 175.of the Laws of 1883, under, the same,…
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Submission of a controversy upon ah agreed statement of facts pursuant to section 1279 of tlié Code of Civil Procedure/ The Bankers’ Life Insurance Company of the City of New York is a corporation originally organized as a fraternal, organization on March 24, 1869,-under the name of the “Bank Clerks’ Mutual Benefit Association of the City of 'New York.” ■ On the 15th day of August, 1884, it was formally incorporated under chapter 175.of the Laws of 1883, under, the same, name, .and was thereafter; on June 28, 1893, reincorporated under-article'6 of chapter 690 of the Laws of 1892, known as…
1Opinion of the Court
Scott, J. :
The dividends over which this controversy has arisen may be divided into two classes, those declared and -partly paid out of capital, and those declared out of surplus, the payment of which did not, however, impair the capital. The dividend which plaintiff seeks to recover falls within the former class. Nothing is better settled than that dividends should be paid out of surplus and profits, and cannot be lawfully paid out of capital contributed by the shareholders for the purpose of carrying on the company’s business and for the protection of its creditors. (2 Thomp. Corp. § 2126;…
2Cited by6 opinions
- Spencer v. LoweCourt of Appeals for the Eighth Circuit · 1912
- Barnes v. Spencer & Barnes Co.Michigan Supreme Court · 1910
- Oilwell Chemical & Materials Co. v. Petroleum Supply Co.California Court of Appeal · 1944
- Helburn Thompson Co. v. All Americas Mercantile Corp.Appellate Division of the Supreme Court of the State of New York · 1924
- In re AllenCourt of Appeals for the First Circuit · 1926
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