First Nat. Bank v. Pearson

Citations

• 109 Miss. 638
• 68 So. 921

Syllabus

<p>1. Corporations. Stockholders. Corporate debts. Repurchase of stock bp ,corporation. Action. Demurrer.</p> <p>Where certain stockholders of a corporation sold their stock amounting to about fifty per cent, of the original stock, back to the corporation at par and thus made the corporation insolvent, they became liable to the creditors of the corporation for the money thus received and it was proper to join them as defendants in one creditors bill, since the creditors held one' claim and toward the liquidation of that claim the several defendants must contribute to the extent of money severally paid them in these stock transactions.</p> <p>2. Same.-</p> <p>In such case it makes no difference that the debt due one of the creditors by the corporation was a renewal; the note represent-' ing it, being a consolidation of the original debts primarily due the creditor by the corporation, with the added provision “collection fees”.</p> <p>3. Same.</p> <p>A, demurrer to such creditors bill did not call in question the creditor’s right to recover expenses of suit or collection as provided by the note, which it held as a renewal and consolidation of the several original debts of the corporation to it.</p>