Lamar Insurance v. Moore

Citations

• 84 Ill. 575

Syllabus

<p>1. Subscription—not payable until called for in accordance with contract. Where a subscriber of stock in an insurance company gives his note for eighty per cent of his subscription remaining unpaid, “on the call of the directors, as they might be instructed by the majority of the stockholders represented at any regular meeting,” no action can be maintained thereon in the name of the company without such call having first been made according to the contract.</p> <p>3. Stock notes—liability thereon. Where an insurance company becomes insolvent, and its effects are placed in the hands of a receiver, stock notes are nothing more than instruments, to be used in the same manner and for the same purpose as the capital stock can be used, and that is as an indemnity to be applied to the discharge of the liabilities of the corporation.</p> <p>3. A stockholder in an insurance company is not legally bound to pay-more of his subscription, or notes given therefor, than may be necessary to satisfy outstanding debts, when the corporation is insolvent and its effects are placed under the control of a receiver.</p> <p>4. Pleading—declaration by receiver of insolvent corporation against stockholder. Where suit is brought for the use of a receiver of an insolvent corporation, against a stockholder, to enforce payment of his subscription, or a note given therefor, no recovery can be had without an averment of the amount of the debts of the corporation. The receiver can recover no more than is sufficient to discharge the debts and liabilities of the corporation. The declaration should also show that the capital stock paid in has been exhausted.</p>