Claffy v. Mechanics Building & Loan Ass'n

The opinion of the Court was delivered by

Mr. Justice Baker.

In November, 1934, the Mechanics Building & Loan Association of Spartanburg, S. C, discontinued receipt of monthly payments on investment stock. The following February, at a stockholder’s meeting held after due notice, a plan of voluntary liquidation by an executive or liquidating committee of its stockholders was adopted. Partial liquidation was carried out by this committee. On November 16, 1932, before voluntary liquidation was undertaken, the board of directors of the association, under authority of the by-laws, declared Series…