Rapides Grocery Co. v. Grant

R. H. Grant, Sr., and his two sons, R. H. Grant, Jr., and O. E. Grant, organized a mercantile corporation in 1920 under the name of R. H. Grant, Inc., with capital stock fixed at $60,000, divided into 600 shares of the par value of $100. The stock was paid for in property and good will transferred to the corporation.

The 600 shares of stock were distributed among these parties as follows: to R. H. Grant, Sr., 420 shares; to O. E. Grant, 179 shares; and to R. H. Grant, Jr., 1 share. The corporation engaged in business immediately after its organization, and soon thereafter became involved in…