Bank of Commerce v. Goolsby
Supreme Court of Arkansas
Appeal from Sebastian' Chancery Court, Fort Smith District; Wm. A. Falconer, Chancellor; 1. The law does not contemplate payment for stock when subscribed — it may be paid for in future installments when called for. The bank had a lien on the stock.
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Appeal from Sebastian' Chancery Court, Fort Smith District; Wm. A. Falconer, Chancellor; 1. The law does not contemplate payment for stock when subscribed — it may be paid for in future installments when called for. The bank had a lien on the stock. Kirby’s Digest, § § 855, 848, 847, 865-6-8. Stockholders had the right to sue other stockholders failing to pay for their stock. 96 Ark. 281, The directors were not asked to bring suit. 97 Ark. 522. The remedy against the stockholders delinquent must first be exhausted. 95 Ark. 124. 2. There is no proof that the directors accepted the return of…
1Opinion of the Court
Wood, J.,
(after stating the facts). Section 8, Article 12 of our Constitution provides, “No private corporation shall issue stocks or bonds except for money or property actually received or labor done.”
The management of the affairs of every business corporation is under the care and control of its board of directors. The above plain provision of our Constitution is for the protection of stockholders, as well as creditors and all who are interested in the financial affairs of private corporations. This wholesome provision of our Constitution is a guarantee to all who are financially interested…
2Cases cited23 opinions
- Briggs v. SpauldingSupreme Court of the United States · 1891
- Martin v. WebbSupreme Court of the United States · 1884
- Bosworth v. . AllenNew York Court of Appeals · 1901
- Solomon v. . BatesSupreme Court of North Carolina · 1896
- Jones National Bank v. YatesSupreme Court of the United States · 1916
18 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Sohland v. BakerSupreme Court of Delaware · 1927
- Harlan Lane v. Frank E. ChowningCourt of Appeals for the Eighth Circuit · 1979
- Robertson v. WhiteDistrict Court, W.D. Arkansas · 1986
- Bank of Dermott v. MeaselSupreme Court of Arkansas · 1926
- Mixon v. Anderson (In Re Ozark Restaurant Equipment Co.)United States Bankruptcy Court, W.D. Arkansas · 1984
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