People v. Bankers' Loan & Investment Co.
New York Court of Common Pleas
Appeal from special term. Action by the people against the Bankers’ Loan & Investment Company for dissolution of defendant. From an order adjudging that defendant’s board of directors had power to fix the book value of its stock, and discharging a temporary receiver, plaintiff appeals-.
1Per curiam
The defendant company having suffered a loss of $150,000, the board of directors charged this loss, pro rata, against the stock of the company’s shareholders, in establishing the book value of shares, and the single question submitted for decision is whether the board had authority for the act Unquestionably, a board of directors has no power to reduce the capital stock of a corporation, as fixed by its constitution. Railroad Co. v. Schuyler, 34 N. Y. 30; Sutherland v. Olcott, 95 N. Y. 93; Railway Co. v. Allerton, 18 Wall 233, 234. If the defendant may be said to have a capital stock, its…
2Cases cited2 opinions
- People v. . LoweNew York Court of Appeals · 1889
- Sutherland v. . OlcottNew York Court of Appeals · 1884
3Cited by3 opinions
- People v. Empire Loan & Investment Co.Appellate Division of the Supreme Court of the State of New York · 1897
- People v. Mercantile Co-operative BankAppellate Division of the Supreme Court of the State of New York · 1900
- People v. Republic Savings & Loan Ass'nAppellate Division of the Supreme Court of the State of New York · 1900