Cases on the Law of Corporations

Cases on the Law of Corporations

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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. 1896 edition. Excerpt: ...the defend ant company. or the preferred stockholders? The provision of the charter, section 8, is. that the preferred or guaranteed stock shall be entitled to dividends from the earnings or income of the corporation before any other dividend shall be paid. The construction of similar provisions has not unfrequently been involved in causes in this country and in England. and the struggle has been to gain for the preferred guaranteed stockholders the double advantage of a shareholder and creditor. but without success. The legislation in this State and elsewhere has been in accord with the idea developed in the reported cases. that the stock and property of a corporation is a trust fund pledged for the payment of its debts. and the creditors' right to payment and their lien is prior to the right of every stockholder. In the late case of National Bank v. Douglass. McCrary's Rep. vol. 1. p. 86. the court say "sacredly pledged." and quoting the language of Judge CLIFFORD in R. R. Co. v. Howard. 7 Wall. 392, adds that "stockholders are not entitled to any share of the capital stock nor any dividend of the profits until all the debts of the corporation are paid." To similar purport and equally strong is the lavvfl1age of Judge STORY in Wood v. Dummer, 3 Mason. 3308.' and again in Mumma v. Potomac Co.. 8 Pet. 286. and of Judge CURTIs in Curran v. The State of Arkansas and Others. 15 How. 304. See also the numerous cases in defendant's brief on this point. It is now wellestablished that dividends on preferred stock are payable only out of net earnings which are applicable to the payment of dividends; Pierce on Railroads. p. 125. and cases cited in notes; and that such dividends are are not more

Product details

  • Paperback | 140 pages
  • 189 x 246 x 8mm | 263g
  • United States
  • English
  • black & white illustrations
  • 1236967593
  • 9781236967596