Illoway v. Daly

Citations

• 65 Pa. Super. 333
• 1916 Pa. Super. LEXIS 78

Syllabus

<p>Corporations — Transfer of property — Dealings with stockholders.</p> <p>A private corporation may transfer to certain of its stockholders a portion of the assets of the company in consideration of the transfer to it of shares of stock held by such stockholders, and in liquidation of claims for services by such stockholders, if it appears that no creditors existed at the time of the transfer, that the transfer was not made with the intention of placing the property beyond the reach of probable future creditors, that there was no fraud on the stockholders, and that all of the stockholders knew of and consented to the transfer. If the company subsequently becomes insolvent and goes into bankruptcy, the trustee in bankruptcy cannot recover the assets so transferred.</p> <p>. A corporation has the right to acquire stock of its own where the transaction is not prohibited by statute.</p> <p>A strictly private corporation owing no peculiar duties to the public has the same dominion over and power to dispose of its property as an individual has.</p>