Albert Pick & Co. v. Warshauer

Mr. Presiding Justice McSurely

delivered the opinion of the court.

Plaintiff’s declaration was met by a demurrer which was sustained. From the adverse judgment which followed, it appeals.

This is an attempt by an action at law to enforce the statutory liability of assenting directors for the debts and contracts of a corporation in excess of the capital stock. Defendants’ demurrer challenged the right to proceed at law and was sustained upon the ground that the sole remedy was in equity.

Section 16 of the Corporation Act of 1872 stated the directors’ liability as follows:

“If the indebtedness of…