Woodson v. McAllister

While I share the opinion of the majority, that what McAllister gave for the stock was not “reasonably worth at least the sum at which it was taken by the company”,1 that in short, the stock issued to McAllister was quite disproportionate to any value received from him for it, I cannot agree that the shares were void in his hands as a fictitious increase of stock under Article 12, Section 6, Texas Constitution. Texas authorities are quite plain that the two provisions of the constitution, (1) that no corporation shall issue stock or bonds except for money paid, labor done or property actually…