Allen v. Commercial Nat. Bank of Detroit

Citations

• 191 F. 97
• 111 C.C.A. 577
• 1911 U.S. App. LEXIS 4913

Syllabus

<p>Corporations (§ 76*) — Subscriptions to Stock — Ultra Vires Contract with Subscriber.</p> <p>A Michigan, manufacturing corporation, prohibited by the law of the state from issuing stock except for full par value received, or until at least one-half of the capital stock or of any proposed increase had been actually taken by good-faith subscriptions, and required to file an annual statement giving a list of its stockholders and the amount of stock-held by each, has no power as against its creditors to enter into a contract giving a subscriber who pays for and receives his stock an option to convert himself into a creditor 'by agreeing to purchase his stock on demand and notice.</p> <p>[Ed. Note. — For other cases, see Corporations, Cent. Dig. §§ 213-2.18; Dec. Dig. § 76.*]</p>