Hill v. Small

Undercofler, Justice.

The question here is whether the board of directors of Pleasant Hills Acres, Inc., is authorized to issue stock therein in excess of 10,000 shares. The trial court declared that it could not and that the 3,800 shares involved in this litigation were void. The stockholders did not authorize such stock issue.

The original charter of Pleasant Hills Acres, Inc., contained the following provisions with respect to capitalization and the issuance of stock: "4. The maximum number of shares shall be Ten Thousand (10,000), all of which shall be common stock with a par value of Ten…