Boyd v. Heron

Citations

• 125 Cal. 453
• 58 P. 64
• 1899 Cal. LEXIS 880

Syllabus

<p>Street Railroad Corporations—Creation of Bonded Indebtedness-Liability of Stockholders—Bonds issued by a street railroad corporation in part payment for the construction of its railroad, are for the creation of a bonded indebtedness within the provision of section 359 of the Civil Code, requiring the creation of the bonded indebtedness of any corporation to be approved by the vote of two-thirds of the entire capital stock; .and in default of such approval do liability is created upon such bonds against the stockholders.</p> <p>Id.—Construction of Code.—Section 456 of the Civil Code permitting railroad corporations to issue bonds in payment of any debts or contracts for constructing or completing their road is to be construed in connection with the general provisions of section 359 of the same code, requiring all corporations to give the stockholders a voice in saying whether or not a bonded indebtedness shall be created or increased.</p>