Cases on the General Principles of the Law of Private Corporations Volume 1 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1902 edition. Excerpt: ...personally liable for its debts. Chester Glass Co. v. Dewey, 16 Mass. 94; Narragansett Bank v. Atlantic Silk Co., 3 Met. 288, 289; Spear v. Crawford, 14 Wend. 20. The statute of 1862, ch. 218, entitled '-An act to define and regulate the enforcement of the liabilities of officers and stockholders of manufacturing corporations," contains the following provisions, upon the construction and effect of which this case depends. By section 2, "the members or stockholders in such corporation shall be jointly and severally liable for its debts or contracts in the following cases, and not otherwise: First, for such as may be contracted before the capital is fully paid in, and a certificate thereof duly recorded." By section 3, no stockholder in such corporation shall be held liable for its debts or contracts, unless a judgment is recovered against the 1101 Mass. 381. 1 corporation, demand for payment made upon the corporation and not complied with for thirty days, and the execution returned unsatisfied. By section 4, "after the execution shall be so returned, the judgment creditor, or any other creditor, may file a bill in equity in behalf of himself and all other creditors of the corporation, against it, and all persons who were stockholders therein at the time of the commencement of the suit in.which such judgment was recovered," for the recovery of the sums due from said corporation to himself and such other creditors, for which the stockholders may be personally liaable, by reason of any act or omission on the part of the corporation or its officers. By section 5, "such sums as may be decreed to be paid by the stockholders in such suit in equity shall be assessed upon them in proportion to the amounts of stock by them respectively held at the...