Jaques v. Missabe Electric Co.

Appeal from an order sustaining defendants’ demurrer.

Defendant company has a capital stock of 500 shares of the par value of $100 each. Plaintiff seeks to restrain defendants from issuing 1,000 shares of nonpar value stock, exchanging two shares of the latter for each outstanding share of the par value stock. No increase in the capital assets nor in the capital stock is contemplated.

Plaintiff claims that L. 1925, p. 412, c. 333, conflicts with art. 10, § 3, of the Minnesota constitution, which in part reads:

“Each stockholder in any corporation, * * * shall be liable to the amount of stock…