Schwemer v. Fry

Were respondent’s subscriptions for stock in the American Founders Securities Company legally canceled by the action of the stockholders at their meeting October 25, 1928? It appears from the evidence that none of the present creditors were creditors at the time of the cancellation of those agreements and that the corporation at the. time was solvent. So the case’ resolves itself into a question of whether the receiver representing the corporation has a claim of any nature arising out of the stock subscriptions against the respondent.

In the fall of 1928 the corporation was experiencing some…