Santa Cruz Railroad v. Spreckles

The important question in this case is, to what extent corporations organized and existing under the laws of this State may levy and collect assessments.

On the part of the respondent it is contended that no assessment can be levied upon any stock for which the subscription price has been fully paid.

*194The matter of assessments is regulated by our statute, and the question is therefore to be determined by its provisions. Section 331 of the Civil Code provides: “ The directors of any corporation formed or existing under the laws of the State, after one fourth of its capital stock has been…