Kidd v. Puritana Cereal Food Co.
Missouri Court of Appeals
Appeal from St. Louis City Circuit Court. — Eon. Virgil Buie, Judge. (1) Under this contract, on the face of the stock, and the Indiana statute, this certificate of stock is an interest-bearing debenture of the company, redeemable by it, and the agreement to pay interest or dividends creates an absolute debt, payable whether anything is earned by this company or not, or whether any dividends are declared by the directors. 10 Cyc., p. 574; Williams v. Parker, 136 Mass. 204;…
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Appeal from St. Louis City Circuit Court. — Eon. Virgil Buie, Judge. (1) Under this contract, on the face of the stock, and the Indiana statute, this certificate of stock is an interest-bearing debenture of the company, redeemable by it, and the agreement to pay interest or dividends creates an absolute debt, payable whether anything is earned by this company or not, or whether any dividends are declared by the directors. 10 Cyc., p. 574; Williams v. Parker, 136 Mass. 204; Burt y. Battle, 31 Ohio St. 116; Savannah v. Silverburg, 108 Ga. 281. (2) An action at law is the remedy. 10 Cyc., p.…
1Opinion of the CourtGoode, J.
(after stating the facts).
The relation of plaintiff to defendant company is argued by her counsel to have been that of creditor, instead of shareholder, and, therefore, they, contend defendant was bound in every contingency, to pay the dividends semiannually as stipulated and whether its net earnings war-rated a' declaration of dividends, or even if its capital would have been impaired by paying them. The general rule of law is that holders of preference shares in a corporation are no more entitled to dividends, unless the earnings of the company justify the directors to declare and pay them,…
2Cases cited9 opinions
- Kent v. . Quicksilver Mining Co.New York Court of Appeals · 1879
- Hamlin v. Toledo, St. L. & K. C. R.Court of Appeals for the Sixth Circuit · 1897
- Lockhart v. Van AlstyneMichigan Supreme Court · 1875
- Heller, Hirsch & Co. v. National Marine BankCourt of Appeals of Maryland · 1899
- Savannah Real Estate, Loan & Building Co. v. SilverbergSupreme Court of Georgia · 1899
4 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Erslon v. Vee-Jay Cement Contracting Co.Missouri Court of Appeals · 1987
- Reagan Bale Co. v. HeuermannCourt of Appeals of Texas · 1912
- In Re Hawkeye Oil Co.District Court, D. Delaware · 1927
- Johnson v. CommissionerUnited States Board of Tax Appeals · 1939
- Rubens v. Marion-Washington Realty Corp.Indiana Court of Appeals · 1945
5 more not listed; retrieve them via the Exa API.