Olson v. State Bank
Supreme Court of Minnesota
Appeal by defendants Manley and others from an order of the district court for Hennepin county, Belden, J., denying a motion for a new trial. None of the appellants were in fact or law holders of stock in the bank, because the proposed increase of stock was never legally made. The statute provides that no increase of capital shall be valid until the whole amount of the increase is paid in cash. Such payment must be certified by the proper officer.
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Appeal by defendants Manley and others from an order of the district court for Hennepin county, Belden, J., denying a motion for a new trial. None of the appellants were in fact or law holders of stock in the bank, because the proposed increase of stock was never legally made. The statute provides that no increase of capital shall be valid until the whole amount of the increase is paid in cash. Such payment must be certified by the proper officer. G. S. 1894, § 2498. There is a similar provision in the national bank act. Rev. St. § 5142. The statutory requirement not having been complied…
1Opinion of the CourtMitchell, J.
This action was brought by the plaintiff, in behalf of himself and all other creditors of the defendant bank, to enforce the liability of stockholders for corporate debts. The defenses interposed by the appellant defendants were, substantially, that (1) they were induced to purchase the stock by false and fraudulent representations which entitled them to rescind; (2) the stock, being illegally issued, was absolutely void and never had any legal existence as stock. The court held defendants liable as stockholders, and ordered judgment accordingly; and the only question presented by this appeal…
2Cases cited5 opinions
- Scovill v. ThayerSupreme Court of the United States · 1882
- Handley v. StutzSupreme Court of the United States · 1891
- Newton Nat. Bank v. NewbeginCourt of Appeals for the Eighth Circuit · 1896
- Veeder v. . MudgettNew York Court of Appeals · 1884
- Dunn v. State BankSupreme Court of Minnesota · 1894
3Cited by20 opinions
- Meholin v. CarlsonIdaho Supreme Court · 1910
- Bartlett v. StephensSupreme Court of Minnesota · 1917
- Palmer v. Bank of ZumbrotaSupreme Court of Minnesota · 1898
- Atwater v. StrombergSupreme Court of Minnesota · 1899
- Henderson v. CrosbySupreme Court of Minnesota · 1923
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