Bassett v. U.S. Cast Iron Pipe and Foundry

The difficulties arising out of the above state of facts are principally those of interpretation. We must ascertain the nature and character of the fund known as "Reserve for additional working capital," and we must understand the relation which the statutory provisions bear to the engagements that the shareholders have entered into among themselves, in the company's charter and by-laws, in order to determine the character of this fund.

Primarily, it is a function of the stockholders to fix the amount to be reserved, over and above the capital stock paid in, as a working capital. Corp. act…