Johnstone v. George

Citations

• 59 Wash. 144
• 109 P. 367
• 1910 Wash. LEXIS 1149

Syllabus

<p>Corporations — Stockholders—Pledges—Stock Held as Collateral Security — Liability eor Unpaid Subscriptions. The pledgee of corporate stock, holding the same as collateral security for a loan made by him to the corporation, the stock being represented to him as issued to another and fully paid for, is not liable upon the statutory liability of stockholders to creditors for unpaid subscriptions, although the stock was re-issued in his name and stands on the books as his absolute property, in view of Rem. & Bal. Code, § 3700, providing that pledgees and persons holding stock as collateral security shall not be liable to creditors as stockholders, but that the pledgor only shall be liable.</p>