Kom v. Cody Detective Agency, Inc.

Citations

• 76 Wash. 540
• 136 P. 1155
• 1913 Wash. LEXIS 1856

Syllabus

<p>Corporations — Capital Stock- — Subscriptions—Agreement to Repurchase — Validity. A contract whereby a corporation sold part of its capital stock agreeing to repurchase the same if the stockholder should become dissatisfied, is against public policy and void, in view of Rem. & Bal. Code, § 3697, providing that it shall be unlawful for the trustees to make any dividend except from the net profits, nor divide, withdraw, or pay to the stockholders any part of the capital stock, nor to reduce the same except in the manner prescribed by law; and it is immaterial that the rights of creditors of the corporation are not involved.</p>