Flenniken v. Marshall

Citations

• 43 S.C. 80
• 20 S.E. 788
• 1895 S.C. LEXIS 126

Syllabus

<p>1. Corporations — Liability of Stockholders. — The Constitution requires that “dues from corporations shall be secured by such individual liability of the stockholders and other means as may be prescribed by law,” and that every aet of incorporation shall so provide. A charter thereafter granted provided “that the personal liability of each stockholder shall not exceed ten per cent, in addition to the amount of shares which he or she holds.” Held, that this was not a penal statute, requiring.strict construction; that the additional liability imposed is definite, and that the stockholders in this corporation are liable to one having a demand against it, to the extent of ten per cent., in addition to the amouDt of the shares which they hold.</p> <p>2. Ibid. — Ibid.—Torts.—Held, further, that the stockholders are so liable for damages growing out of a personal injury inflicted by this corporation, as well as debts by contract, the word “dues” being sufficiently comprehensive to include both.</p>