Allman v. Havana, Rantoul & Eastern Railroad

Citations

• 88 Ill. 521

Syllabus

<p>1. Railway cobpobation—powers before stock subscribed. A railway corporation formed under the general act of March 1, 1872, or the charter directors, can do such acts only as are necessary to set the association in motion as a corporation, until the whole number of shares of capital stock fixed in its articles of association have been subscribed. Until that is done, they can not make contracts, or incur liabilities for the construction of the contemplated road, in which no one of them may have had a pecuniary interest as a stockholder.</p> <p>2. Same—right to make calk of stock. Where a railway corporation was attempted to be formed under the act of March 1, 1872, and its capital stock fixed in its articles at §1,000,000, and the shares of capital stock fixed at 10,-000, of §100 .each, it was held, that until the whole amount had been subscribed, the corporation could have no legal existence, and that until the whole stock was subscribed, the directors could not make any call or assessment on the shares of those who had subscribed.</p>