Jay Ronald Co. v. Marshall Mortgage Corp.

This controversy was submitted to the Appellate Division upon agreed facts pursuant to Civil Practice Act, sections 546-548.

The defendants are a domestic corporation and its officers and directors. The corporate defendant was organized in 1926 with a stated capital of $300,000 represented by 100,000 common shares of no par value. Since April, 1938, a varying number of these shares have been in the ownership of the plaintiff.

At a meeting of the stockholders held on January 22, 1940, the stated capital of the corporate defendant was reduced from $300,000 to $100,000 and the resulting capital…