Braddock Electric Railway Co. v. Bily

Citations

• 11 Pa. Super. 144
• 1899 Pa. Super. LEXIS 119

Syllabus

<p>Corporations — Stock subscription — Release—Ultra vires.</p> <p>A subscription to stock oí a railway company is an undertaking not only with the company and the commonwealth but with all the other subscribers to the stock. It is not within the power of the officers of the corporation to release such subscription without a sufficient consideration. The rights of other stockholders and bondholders are vested in the subscription.</p> <p>Defendant subscribed to twenty shares of stock, par value $50.00; he had paid an instalment of $5.00 and resisted a call for a second instalment alJeging a release to be inferred from the fact that he had received a paid-up certificate for two shares. Held, that plaintiff, if he had asked for them, would have been entitled to binding instructions and that no release could be inferred from the delivery of. the certificate, such release, even if intended, being ultra vires.</p>