Kirk v. Kirk's Auto Electric, Inc.

*530REVERSING

LAMBERT, Justice.

The issue before this Court is whether shares of common stock issued by a corporation in exchange for unsecured promissory notes are void or voidable. The Court of Appeals held that such shares were merely voidable and that appellant’s participation in the issuance of such shares precluded his claim. We disagree and reverse.

In 1970, Kirk’s Auto Electric, Inc. issued 11 shares of its common stock to appellee, Billy H. Bone. In 1977, the corporation issued 10 shares to appellee, André Bone, and 5 shares to appellee, Joe T. Bone. In exchange for the issuance of these…