Star Mills v. Bailey

Opinion of the Court by

Judge O’Rear

Reversing.

Appellant is a manufacturing and trading corporation, Appellee was a stockholder, as well as secretary and treasurer of the corporation, and in March of 1906 one Newton was its president. At that time it was needing money. It had, as it was empowered by its charter to do, authorized the issual and sale of two thousand dollars of preferred stock at par. Newton offered for the company to sell appellee Bailey five shares of the preferred stock at par.

Bailev on June 1, 1906, paid on account of the corporation $500 of its debts. One Vanarsdall had…