Cammack v. Levy

Citations

• 120 La. 873
• 45 So. 925
• 1908 La. LEXIS 585

Syllabus

<p>1. Corporations — Subscriptions — Release o-e Subscribers.</p> <p>The general doctrine is that a corporation has no legal capacity to release an original subscriber to its capital stock from the obligation of paying for his shares, in whole or in part, by reducing the capital stock or by any other arrangement. 10 Cyc. 450, 451.</p> <p>[Ed. Note. — For eases in point, see Cent. Dig. vol. 12, Corporations, § 296.]</p> <p>2. Same — Stockholders—Liability to Creditors.</p> <p>Where a corporation by vote of its stockholders reduced the par value of the shares from $100 to $40, and subsequently one of the shareholders sold 15 shares thus reduced to another shareholder, held, that the purchaser’s liability to creditors cannot be enforced beyond the reduced par value of the shares; and, further, that the obligation of the original subscriber and transferror, quoad existing creditors, was not affected by the reduction or the transfer of the reduced shares.</p> <p>[Ed. Note. — For cases in point, see Cent. Dig. vol. 12, Corporations, §§ 874-881, 960-971.]</p> <p>(Syllabus by the Court.)</p>