Smith v. Southern Foundry Co.

Opinion op the Court by

Judge Nunn.

Affirming.

The question here is whether ownership of a certificate of preferred stock made appellant a corporate creditor or stockholder. The Southern Foundry Company is a Kentucky corporation organized March 9th, 1901. By provision of its charter, its capital stock is fixed at $40,000, consisting of 800 shares of $50 each. These shares are divided into. two classes, viz., common and preferred. The corporation was authorized to issue $25,000 of its capital as common stock, and $15,000 of it as preferred.

We quote clause 6 of the charter:

‘‘ 6. The preferred…