Swan v. Burnham
Supreme Court of New Hampshire
Bill in Equity, to enforce the individual liability of the directors of the Mont Vernon Hotel Company. Answer, that the cause of action did not accrue within six years, etc. Facts found by the court. The Mont Vernon Hotel Company is a New Hampshire corporation, and the defendants were directors during the years the debts in question were contracted.
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Bill in Equity, to enforce the individual liability of the directors of the Mont Vernon Hotel Company. Answer, that the cause of action did not accrue within six years, etc. Facts found by the court. The Mont Vernon Hotel Company is a New Hampshire corporation, and the defendants were directors during the years the debts in question were contracted. They made annual returns of the condition of the corporation to the secretary of state, from which it appeared that its debts were in excess of one half of the value of its property, to an amount exceeding the plaintiffs’ claims. All but two of…
1Opinion of the CourtPike, J.
“No corporation, banks and insurance companies excepted, shall contract debts or incur liabilities exceeding one half the value of its property.” P. S., c. 150, s. 4. If, by vote or by its officers, a corporation violates this provision, the directors thereby become individually liable to the amount of the excess “for the debts and contracts of the corporation then existing or contracted while they remain in office.” lb., s. 5. The effect of these enactments is to impose the liability of sureties for the corporation upon the directors, to the amount of such excess, as a penalty for a…
2Cases cited2 opinions
- Connecticut River Savings-Bank v. FiskeSupreme Court of New Hampshire · 1880
- Connecticut River Savings Bank v. FiskeSupreme Court of New Hampshire · 1882
3Cited by4 opinions
- Peterson v. BallCalifornia Supreme Court · 1931
- Olesen v. RetzlaffSupreme Court of Minnesota · 1931
- State v. SantelloSupreme Court of Connecticut · 1935
- Bayer v. BayerSupreme Court of New Hampshire · 1983