Bank of Morgan v. Reid
Court of Appeals of Georgia
Complaint; from Decatur superior court — T. S. Hawes, judge pro hac vice. December 13, 1920. Bank of Morgan obtained a judgment against Clardy, Lumber Company, a corporation. A return of nulla bona was entered by the sheriff on the execution.
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Complaint; from Decatur superior court — T. S. Hawes, judge pro hac vice. December 13, 1920. Bank of Morgan obtained a judgment against Clardy, Lumber Company, a corporation. A return of nulla bona was entered by the sheriff on the execution. The bank then sued J. A. Beid and Mrs. M. J. Beid, stockholders of the corporation from the time of its, organization, and A. J. Tyson and O. P. Stubbs, who bought the stock of J. G. Johnson and Mrs. M. M. Johnson, the other two original stockholders. The petition alleged the insolvency of the corporation, and prayed judgment against its stockholders for…
1Opinion of the CourtJenkins, P. J.
1. Unpaid stock subscriptions are corporate assets, and constitute a trust fund for the benefit of creditors. Chappell v. Lowe, 145 Ga. 717 (3) (89 S. E. 777). A judgment creditor of an insolvent corporation, suing exclusively for his own benefit, may maintain against one or more of the stockholders a suit to recover balances due on their stock subscriptions; or all of such stockholders may be joined in one suit. Civil Code (1910), § 2251; Harrell v. Blount, 112 Ga. 711 (4), 718 (38 S. E. 56); Allen v. Grant, 122 Ga. 552, 557, 558 (50 S. E. 494); Carlisle v. Ottley, 143 Ga. 797 (1, 2) (85 S.…
2Cases cited11 opinions
- Fitzpatrick v. McGregorSupreme Court of Georgia · 1909
- Central of Georgia Railway Co. v. Central Trust Co.Supreme Court of Georgia · 1910
- Allen v. GrantSupreme Court of Georgia · 1905
- Reid v. Eatonton Manufacturing Co.Supreme Court of Georgia · 1869
- Harrell v. BlountSupreme Court of Georgia · 1901
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3Cited by5 opinions
- Leggett v. Missouri State Life Insurance CompanySupreme Court of Missouri · 1960
- Iowa Southern Utilities Co. v. CassillCourt of Appeals for the Eighth Circuit · 1934
- May v. CommissionerUnited States Board of Tax Appeals · 1936
- Broyles v. JohnsonCourt of Appeals of Georgia · 1959
- May v. CommissionerUnited States Board of Tax Appeals · 1936