Eastburn v. Grove

Citations

• 68 Pa. Super. 363
• 1917 Pa. Super. LEXIS 131

Syllabus

<p>Corporations — Stock subscription — Beturn of money — Promoters.</p> <p>When the promoters of a project to incorporate a bank, induce persons to sign a stock subscription agreement by which it is provided that each share “shall be issued at $55, of which par value is $50 and $5 a subscribed premium, is for undivided profits, parts of which you may use for an organization fund to purchase books, checks and supplies and pay legal and other expenses incident to organization,” the promoters may use only the $5 for organization expenses, and if the project of incorporation fails, and it is found that they have trenched upon the $50 subscribed for capital, they will be personally liable to the subscribers for the loss.</p>