Dailey v. Foster
New Mexico Supreme Court
Appeal from, and error to District Court, Bernalillo County. Stockholders in a corporation formed under sec. 23 of the Corporation Act are liable to creditors until the capital certified by their officers as that with which they commenced business is fully paid in money or money’s worth. Chap. 79, laws of 1905; id. secs. 22, 23, 27. Intentional over-valuation of property by directors is actual fraud.
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Appeal from, and error to District Court, Bernalillo County. Stockholders in a corporation formed under sec. 23 of the Corporation Act are liable to creditors until the capital certified by their officers as that with which they commenced business is fully paid in money or money’s worth. Chap. 79, laws of 1905; id. secs. 22, 23, 27. Intentional over-valuation of property by directors is actual fraud. Secs. 54, 57 and 96, chap. 79, laws of 1905; Sacramento v. Lee, 113 Pac. 834; Wetherbee v. Baker, 35 N. J. Eq. 501; Sawyer v. Hague, 17 Wall. 610;-Easton Natl. Bank v. American Brick & Tile Co.,…
1Opinion of the Court
OPINION OP THE COURT.
ROBERTS, C. J.
The plaintiffs in the court below, here seek to review the judgment of the Second Judicial District Court of the Territory of New Mexico, dismissing the complaint upon the merits. The action was brought against the defendant, as a stockholder in the Torpedo Copper Co., to recover a debt owing to the plaintiffs by the corporation, upon the ground that the corporation being insolvent, and the defendant not having paid for his stock, was under the statute liable to creditors of the corporation to the extent of the amount unpaid. The corporation was organized…
2Cases cited9 opinions
- See v. HeppenheimerNew Jersey Court of Chancery · 1905
- Hunter v. Manhattan Railway Co.New York Court of Appeals · 1894
- Toney v. ToneyIndiana Supreme Court · 1880
- Coffinberry v. McClellanIndiana Supreme Court · 1905
- Anderson v. FeutschNevada Supreme Court · 1909
4 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- O'MEARA v. Commercial Insurance CompanyNew Mexico Supreme Court · 1962
- State v. FernandezNew Mexico Supreme Court · 1952
- Crego Block Co. v. D. H. Overmyer Co.New Mexico Supreme Court · 1969
- Board of Equalization v. Heights Real Estate Co.New Mexico Supreme Court · 1964
- Ellis v. Citizens' National BankNew Mexico Supreme Court · 1918
1 more not listed; retrieve them via the Exa API.