Land Title & Trust Co. v. Connolly

Citations

• 233 Pa. 1
• 81 A. 903
• 1911 Pa. LEXIS 453

Syllabus

<p>Corporations — Bonding company — Ten per cent deposit — Insufficient capital — Defective incorporation — Liability of officers and directors— Equity — Remedy at law.</p> <p>A creditor of a bonding company cannot for himself and other creditors maintain a bill in equity to enforce a personal liability against the officers and directors of the company because they permitted the company to begin business without having ten per cent of its stock paid in cash at the time the certificate was sworn to, and without having $125,000 of the capital paid in when it started in business, as required by law in case of title insurance companies, when there is no averment that the acts of the defendants caused loss to the corporation or brought about its insolvency, and the claim advanced is for moneys due by the defendants to the plaintiffs directly, and not through the corporation.</p>