Grant v. Southern Contract Co.
Court of Appeals of Kentucky
Case 105 — ACTION AGAINST STOCKHOLDERS OF INSOLVENT CORPORATIONS APPEAL FROM JEFFERSON CIRCUIT COURT, LAW AND EQUITY DIVISION. 1. A distribution of corporate assets among stockholders, leaving corporate debts unpaid, may be recovered back by creditors, (a.) Assets of a corporation can not be parcelled out among-its stockholders when there are no net earnings to divide. Union Natl.
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Case 105 — ACTION AGAINST STOCKHOLDERS OF INSOLVENT CORPORATIONS APPEAL FROM JEFFERSON CIRCUIT COURT, LAW AND EQUITY DIVISION. 1. A distribution of corporate assets among stockholders, leaving corporate debts unpaid, may be recovered back by creditors, (a.) Assets of a corporation can not be parcelled out among-its stockholders when there are no net earnings to divide. Union Natl. Bank v. Douglass, 1 McCrary, 86; Gratz v. Redd, 4 B. Mon., 178; Hamar v. Taylov-Riee Co., 84 F. R., 392; Crandall v. Lincoln, 52 Conn., 73; Williams v. Boice, 38 N. J. Eq., 364; Lockhart v. Van Alstyne, IS Am. Rep.,…
1Opinion of the Court
JUDGE HAZEDRIGG
delivered the opinion of the court.
The Southern Contract Company was incorporated under the laws of Kentucky, with power and authority to construct railways in the State, and receive in payment thei'eon the stocks and bonds of such railroad companies. Its capital stock was only $12.“,0(10, and the shares of $100 each were owned by some one hundred persons. Its chief *786means to carry out the purpose of its incorporation consisted necessarily in tlie proceeds of the stock and bonds of the railroads to be built by it. Under contract with the Louisville Railroad Company, by which it…
2Cases cited2 opinions
- Gratz v. ReddCourt of Appeals of Kentucky · 1843
- Grant v. RossCourt of Appeals of Kentucky · 1896
3Cited by7 opinions
- Reid v. Owensboro Savings Bank & Trust Co.Court of Appeals of Kentucky · 1911
- Fricke v. AngemeierIndiana Court of Appeals · 1913
- Martin v. City of LexingtonCourt of Appeals of Kentucky · 1919
- Bingham v. Marion Trust Co.Indiana Court of Appeals · 1901
- Southern Contract Co.'s Assignee v. NewhouseCourt of Appeals of Kentucky · 1902
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