Chesnut v. Pennell

Citations

• 92 Ill. 55

Syllabus

<p>1. Evidence—proof of liability of corporation necessary to hold stockholder liable. In a suit against a stockholder of an insurance company, based upon a decree against the company upon a policy of insurance and a loss by fire, for a certain sum, no recovery can be had without proof of the execution of such a policy as is described in the declaration, and of a loss by fire. The recitals in the decree of these facts are no evidence against the stockholder, who was no party to the suit in which it was rendered.</p> <p>2. Same — decree evidence against parties only. A decree against a corporation finding its liability and the amount of its indebtedness, is not admissible in evidence against a stockholder of such corporation who was no party to the decree, either actually or constructively.</p> <p>3. .Parties—suit to close up insolvent corporation. In proceedings under sec. 25 of the “Act concerning corporations,” approved April 18, 1872, to dissolve or close up the business of corporations, etc., the stockholders are necessary parties.</p>