Taylor v. Ziegenhagen
Court of Appeals for the Seventh Circuit
Appeal from the District Court of the United States for the Northern District of Illinois. The Haas Company, a corporation organized under the laws of Illinois, October 24th, 1892, with an authorized capital stock of eighteen thousand dollars, and engaged in a soda water manufacturing business, was, on or about the 22nd day of December, 1902, adjudicated a bankrupt, and its property put into the hands of a receiver pending the appointment of a trustee.
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Appeal from the District Court of the United States for the Northern District of Illinois. The Haas Company, a corporation organized under the laws of Illinois, October 24th, 1892, with an authorized capital stock of eighteen thousand dollars, and engaged in a soda water manufacturing business, was, on or about the 22nd day of December, 1902, adjudicated a bankrupt, and its property put into the hands of a receiver pending the appointment of a trustee. Thereupon appellee, mortgagee under a chattel mortgage, filed his petition, praying that the receiver he directed to turn over to him all the…
1Opinion of the CourtGrosscup, Circuit Judge
The sole question raised by this record is this: Is it within the lawful power of shareholders of a corporation, to the exclusion of creditors of the corporation, subsequent in point of time to the transaction, to use the notes, and pledge the assets of the corporation, toward paying the shareholders’ individual debts contracted in the purchase from others of such shares?
We think not. The corporation, as a statutory person, with power to transact business, invite credit, incur obligations, and to discharge them, is an entity entirely distinct from its individual shareholders, and from their…
2Cited by17 opinions
- Aluminum Mills Corp. Ex Rel. Official Unsecured Creditors Committee v. Citicorp North America, Inc. (In Re Aluminum Mills Corp.)United States Bankruptcy Court, N.D. Illinois · 1991
- Gulf Pipe Line Co. v. LasaterCourt of Appeals of Texas · 1917
- Johnson v. Canfield-Swigart Co.Illinois Supreme Court · 1920
- Liquidators of Exchange Nat. Bank of Shreveport v. United StatesCourt of Appeals for the Fifth Circuit · 1933
- Widett v. Pilgrim Trust Co.Massachusetts Supreme Judicial Court · 1958
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