Reid v. Eatonton Manufacturing Co.
Supreme Court of Georgia
Personal Liability of Stockholders, etc. Equity. Before Judge Robinson. Putnain Superior Court. September Term, 1869. Alexander Reid et. al., as creditors of the Eatonton Manufacturing Company, by their bill, made this case: In 1835 the General Assembly of Georgia incorporated said company, as a cotton and wool factory, with the usual powers of a corporation.
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Personal Liability of Stockholders, etc. Equity. Before Judge Robinson. Putnain Superior Court. September Term, 1869. Alexander Reid et. al., as creditors of the Eatonton Manufacturing Company, by their bill, made this case: In 1835 the General Assembly of Georgia incorporated said company, as a cotton and wool factory, with the usual powers of a corporation. Under this charter, the company began business, with a capital of $50,000 00. In June, 1849, having made say $40,000 00 in profits, the capital stock was increased to $75,000 00 and distributed among the original stockholders pro rata.…
1Opinion of the CourtBrown, C. J.
The charter of this company contains no individual liability clause, and no general statute of this State imposed any such liability, when the charter was granted. And we hold that it was not in the power of a majority of the stockholders, by any by-law which they might pass, to impose any such liability. This very question is decided by the Supreme Court of Massachusetts in the Trustees, etc., vs. Flint. 13 Metcalf Reps., 539. In that case the charter imposed no personal liability npon the stockholders. But under the usual power given for that purpose, the stockholders met, and enacted…
2Cited by16 opinions
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