Woodson v. McAllister

HOLMES, Circuit Judge.

This suit was filed by appellant on behalf of herself and all other stockholders similarly situated. She seeks the cancellation of corporate stock of the par value of $400,000 issued to one of the appellees. She alleges that nothing was paid for the stock, either in money, labor, or property, and that the issuance thereof was void under the constitution and statutes of the State of Texas.

The provisions relied upon by her provide that no corporation shall issue stock except for money paid, labor done, *925or property actually received and that all fictitious increase of stock…