American Financial Methods; A Work of Reference for Business Men, Investors, Professional Men and Students (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1912 edition. Excerpt: ...patents, or other property. In some of the States it is provided by statute that stock may be issued for services rendered to the corporation. The statutes of several of the States now provide that where stock is issued in payment of property purchased the judgment of the directors, in the absence of actual fraud in the transaction, is final and conclusive as to the value of the property, and that such stock shall not subject the holders to any liability, either to the company or its creditors. It has been held, however, by the courts that gross overvaluation of property is strong evidence of fraud. Where the capital stock of a corporation is not subscribed in full at the time of incorporation it is usually provided either by statute or by the certificate of incorporation that the directors may issue such stock from time to time to the aggregate amount authorized by the charter. Where stock is issued for money it is usual to have subscriptions signed by the proposed stockholders. A subscription is not required to be in any particular form, but is binding if it clearly shows that the signer agrees to take and pay for a certain number of shares of stock of the corporation, and is accepted by some person authorized to accept it on behalf of the company. Under the laws of the State of New York a subscription made after the incorporation of the company is not valid and cannot be enforced against the subscriber unless at the time of making it he pays ten per cent. of the amount thereof to the company. A subscriber must pay the full par value of the shares of stock subscribed by him at such time as the directors shall require. The action of the directors in requiring a payment to be made on account of a subscription is called an assessment of the stock, ..