Kimball v. New England Roller Grate Co.
Supreme Court of New Hampshire
The first case is a bill in equity brought by George E. Kim-ball, J. E. Rider, and W. H. Rider against the Grate Company, H. 8. Williams, F. C. Iieath, Frederick Atherton, J. C. Johnson, E. B. Stillings, C. B. Ames, and A. B. Tuttle, alleging, as amended, that the defendants Williams, Heath, Atherton, and Johnson, as directors, had illegally and fraudulently issued to Williams a certificate for 813 shares of stock in the corporation upon an illegal contract, and that he had…
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The first case is a bill in equity brought by George E. Kim-ball, J. E. Rider, and W. H. Rider against the Grate Company, H. 8. Williams, F. C. Iieath, Frederick Atherton, J. C. Johnson, E. B. Stillings, C. B. Ames, and A. B. Tuttle, alleging, as amended, that the defendants Williams, Heath, Atherton, and Johnson, as directors, had illegally and fraudulently issued to Williams a certificate for 813 shares of stock in the corporation upon an illegal contract, and that he had illegally and fraudulently transferred said stock to the defendants Stillings, Ames, and Tuttle, who now hold the same.…
1Opinion of the CourtBlodgett, C. J.
In any permissible view, the validity of the issue of the 813 shares cannot be sustained. Numerous reasons lead to this conclusion. One is, that these shares constituted a part of the 1,497 shares, the issue of which is found by the referee upon competent evidence to have been without consideration and void. Such being the fact, that issue must be regarded as if it had never been made, and consequently no part of the shares constituting the issue could be reissued, even to bona fide purchasers, except upon payment of the par value, or $10 per share, unless at auction for non-payment of…
2Cases cited3 opinions
- Clarke v. Lincoln Lumber Co.Wisconsin Supreme Court · 1884
- People ex rel. Teel v. SweetingNew York Supreme Court · 1807
- Morris v. UnderwoodSupreme Court of Georgia · 1856
3Cited by3 opinions
- Ellis v. Penn Beef Co.Court of Chancery of Delaware · 1911
- Shaw v. StaightSupreme Court of Minnesota · 1909
- Hallett v. New England Roller-Grate Co.U.S. Circuit Court for the District of Massachusetts · 1900