Vick v. LaRochelle
Mississippi Supreme Court
Error to the Circuit Court of Warren County. Hon. UutoN M. YouNG, Judge. A solvent corporation can for valuable consideration cancel the subscription of one of its subscribers to its capital stock. At common law, sucb a transaction would not be fraudulent as to the company’s creditors. It is not forbidden by law, and is within the purposes for which the corporation was chartered. Code 1871, § 2413, does not admit of the construction for which opposing counsel contends.
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Error to the Circuit Court of Warren County. Hon. UutoN M. YouNG, Judge. A solvent corporation can for valuable consideration cancel the subscription of one of its subscribers to its capital stock. At common law, sucb a transaction would not be fraudulent as to the company’s creditors. It is not forbidden by law, and is within the purposes for which the corporation was chartered. Code 1871, § 2413, does not admit of the construction for which opposing counsel contends. Only instalments that have been called for under the charter and by-laws of the company are “ due.” The word “ unpaid ”…
1Opinion of the CourtCampbell, J.
The substance of the plea demurred to is, that the defendant had been released by the corporation, at a time when it was solvent, from further liability on his subscription for stock, in consideration of a payment by him of a part of his subscription, which was in excess of the calls made upon stockholders by the company, and a surrender by him of one half of his shares of stock. The declaration shows that the defendant was a stockholder in the corporation, when the debt sued on was contracted. The plea seeks to avoid the liability of the defendant to the creditor of the corporation, by the…
2Cited by3 opinions
- Gift v. LoveMississippi Supreme Court · 1932
- Robinett v. StarlingMississippi Supreme Court · 1895
- Frazier v. ZachariahMississippi Supreme Court · 1936