Denny Hotel Co. v. Schram

The opinion of the court was delivered by

Dunbar, C. J.

There are two controlling questions in this case:

First, Is a subscriber to the stock of a corporation in this state liable’ for the amount of his subscription upon the failure of the corporation to obtain subscriptions to the extent of the full capital stock; or, expressed in other words, is the obtaining of the subscription to the extent of the full capital stock a condition precedent to the liability of the subscriber ?

Second, Can a corporation under the laws of this state become an incorporator by subscribing for shares in another…